Saturday School — What Is Bankruptcy?

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Bankruptcy
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What happens when you can’t pay your debts? In ancient Greece, you might very well have become a “debt slave” to your creditor. That would have meant cleaning the debtor’s house, tending his garden or doing whatever else was demanded until you paid off the debt.

Later in history, you might have ended up in debtor’s prison. Yes, that means you would have ended up in jail until someone paid off your debt.

Fortunately, debtors have more civilized options today. In a worst-case scenario, you can file bankruptcy. But what exactly does that mean?

This Khan Academy video explains the various chapters of bankruptcy. Watch the video to learn if this is the right option for you – and the serious limitations and drawbacks that come with making this choice.

Have you ever considered filing bankruptcy? Let us know by commenting below or on our Facebook page.