Bankruptcy Directory

Bankrupt is a person who is unable to pay off his debts therefore It is declared in law that he is unable to pay his debts. Thus, a bankrupt under goes the legal process resulting in bankruptcy. In this case when an individual is bankrupt his property, bank balance is administered and disposed of for the benefit of the creditors,by the order that is issued by the court of law against a bankrupt the banker has to stop all the transaction in the name of the bankrupt. Thus the individual is not bankable unless and until he is able to pay off his debts. The banker should not open a new account in the name of the Insolvent knowingly or unknowingly. The banker must hand over the credit balance of the insolvent to the official assignee appointed by the court and should act according to the direction given by them.