Commercial Bankruptcy

Bankruptcy is a legally declared inability of an individual or business to pay creditors. Creditors may file a bankruptcy petition against a debtor (involuntary bankruptcy) in an effort to recover a portion of what is owed. In most cases, bankruptcy is filed by the debtor (voluntary bankruptcy). Bankruptcy is placed under Federal jurisdiction by the United States Constitution, which allows Congress to execute "uniform laws on the subject of bankruptcies throughout the United States."

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