What's the difference between default and bankruptcy?

Which is the lesser of two evils, bankruptcy or default?– DBU Dear DBU,Rarely does a person file for bankruptcy without already having defaulted on at. read more

So, if a person defaults on an account, meaning they have failed to repay it as agreed, they have taken the first slippery step toward bankruptcy. That doesn’t mean the person will declare bankruptcy, but they are a step closer to it. A default occurs with only one account. read more

Bankruptcy is a legal process, where creditors work with legal authorities to oversee the finances of an entity which is in default or insolvent. Bankrupcty is the process through which creditors collect the debts owed to them. read more

Bankruptcy is the legal process through which private individuals can be released from their debt while Liquidation differs from bankruptcy in the sense that the business cannot be resuscitated, whereas an individual can make a fresh start after becoming bankrupt.The same stand individuals and companies are advised to obtain legal advice from a specialist insolvency solicitor before entering into bankruptcy or liquidation. read more