Saturday School — What Is Bankruptcy?

Bankruptcy
Photo by create jobs 51 / Shutterstock.com

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.

How to find cheaper car insurance in minutes

Getting a better deal on car insurance doesn't have to be hard. You can have The Zebra, an insurance comparison site compare quotes in just a few minutes and find you the best rates. Consumers save an average of $368 per year, according to the site, so if you're ready to secure your new rate, get started now.

Read Next
7 Hidden Ways to Get More Out of Amazon
7 Hidden Ways to Get More Out of Amazon

You don’t have to be a Prime member to take advantage of these little-known perks of shopping on Amazon.

12 Ways Retirees Can Earn Passive Income
12 Ways Retirees Can Earn Passive Income

These simple ways of earning income without a lot of active, ongoing effort can stretch your retirement dollars.

Could You Give Up These 7 Expenses to Save Thousands of Dollars a Year?
Could You Give Up These 7 Expenses to Save Thousands of Dollars a Year?

These monthly costs eat at your disposable income. Here’s what you’d save if you cut them entirely or even trim them just 10%.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Comments

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.