What do you mean by Bankrupt

What do you mean by Bankrupt?

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A bankrupt person has liabilities that exceed $1,000 and has performed any of ten specified acts of bankruptcy within the preceding six months and has had a petition in bankruptcy filed with the courts against him or her by creditors or has made a voluntary assignment in bankruptcy with the Official Receiver.

A commercial business that finds itself in financial difficulty has a third option, and that is to file with authorized Receiver a notice of objective to compose a proposal to its creditors. A proposal is a plan to restructure the business’s affairs for the purpose of enabling it to continue. Under the Companies' Creditors Arrangement Act, there is a similar means of avoiding liquidation by means of a compromise and arrangement.

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