Why is bankruptcy important for an economy?

Bankruptcy is a moral position that acknowledges that some people can do more economic damage than they can reasonably dig themselves out of and that we (as a society) are willing to give them a "do-over". read more

Bankruptcy is the most important part of any economic crisis. It is the plumbing of economics. It allows the market to flush away the inefficient businesses and reallocate capital to efficient businesses. read more

If an individual files such a bankruptcy, the bankruptcy definition is a consumer Chapter 7 bankruptcy. If it is filed by a business, the bankruptcy definition is a business Chapter 7 bankruptcy. These proceedings will typically last between three and six months. read more