History of Bankruptcy
When a person is unable to pay his debts or, if an organization has the same condition, then the owner of the company or the person concerned declares a bankruptcy, through legal jurisdiction. This is the best way to get out of your debts, and start a new journey. Now, the beginning of bankruptcy was not in very ancient times, as in the ancient times, there are no clear evidences of such procedures. Basically, it has been found that in those times, people have to work in a physical basis for their creditor to pay of the money they owe to the creditor.
A state of bankruptcy was first discovered in the year 1542 in the Europe. It has been seen in the English law that at that particular time, there were clear procedures which were approved legally to settle bankruptcy or, any kind of insolvency of money. Since then there were various bankruptcies filed and the rules were also have been changed in the due course of time. Nowadays, there are several chapters of bankruptcy, and as per the condition of the debtor, he or, she declare his or, her bankruptcy under that particular file. However, it is best to avoid such condition, and if cannot be avoided then should be filed as soon as possible.