Bankruptcy can be defined as the legal status of a person or other entity which cannot repay the debts. Bankruptcy is imposed by the debtor in some jurisdiction.
As an entrepreneur if you hit rock bottom, it will become a tough challenge for you to back up again. Your self belief will be shattered when there is nothing left in your bank account. Bankruptcy is not an ideal solution. It causes various serious downsides such as loss of property, debts and your bills don’t go away and your outstanding debts still transfer to others. Once you have bankruptcy, it is very difficult to back up again. Keeping in mind these we need to be very careful in handling finance.