Mortgage Glossary and terms what is bankruptcy


Bankruptcy

"A tactic that individuals use to relieve themselves of debts and/or liabilities when they are no longer able to repay. The most common form of individual bankruptcy is a Chapter 7, when an individual frees himself from most of his/her debts. Borrowers who have undergone bankruptcy usually cannot qualify for ""A"" paper loans until after two years after declaration and a re-establishment of credit."