Skip to main content

WHAT IS BANKRUPTCY ?.

 



For years, the neighbors in Petero’s village have called him Chairman Wabagaga (The richest man). Petero has really eaten his money and lived a posh life. Even his shamba boy drives a vitz to pick up groceries. What the villagers did not know was that all Petero’s businesses were running on bank loans. Last week, all these banks and loan sharks came calling and now Petero is stuck and has no money to pay all these debts. He is now afraid of the embarrassment of the villagers finding out about his problems. 

In the law, there is a word for a situation like the one Petero is in and that is “bankruptcy”. 


In simple terms, it is a state where a person is unable (not in a financial position) to pay their debts. For instance, if one of the banks or people who lent Petero money show up at the agreed time and Petero cannot pay them at that time, then we can say that Petero is in a state of bankruptcy. 

To be clear, having debts that are more than the amount of money that you have does not mean that you are bankrupt. What creates a state of bankruptcy is when you are not able to pay those debts at the time that they are due to be paid. For example, If Petero had agreed with the banks that he would pay them next year and instead the loan sharks decide to demand him the money today and he fails to pay,  it would not be right to call him bankrupt because it would mean that the loan sharks are coming for debts that are not yet due.


Do you know anyone who has been in Petero’s situation before? Let us know in the comments below


📷:Unsplash


#BarefootLaw

#We  #inform the #uninformed

#osutayusuf

Comments

Popular posts from this blog

UGANDA ELECTORAL COMMISSION TO ELIMINATE NATIONAL IDENTIFICATION CARDS (IDs) FOR 2021 GENERAL ELECTIONS.

The elimination of using National IDs (Ndagamuntu) for the 2021 elections should not have come as a surprise. One would be very NAIVE to think that Bobi Wine has not prepared for this in his Business Plan under the RISK section. It is public knowledge that our EC is not independent.  It is also public knowledge that Military Dictator Yoweri Museveni will never lose an election. What stunned us this morning is when we noticed that on social media, people were mocking Bobi with his "get your Ndagamuntu".  We are on record for saying to all Our readers that the National ID is like Apartheid in South Africa. Students of History would know how those IDs were being used to arrest people, deny them jobs, deny them basic services. Consequently, Bobi was not wrong and will never be wrong on the Ndagamuntu. Except the ones attacking him and mocking him forget that in Uganda, now, no National ID (Ndagamuntu), no service.  If you have not been denied registering your child i...

Here is Why Our Utterances For Praying Jesus And God To Come Liberate Ugandans, May Be Misplaced. This Phrase is like inform of a Letter To Some Categorized Section Of Ugandans.

https://m.facebook.com/yusufosuta/photos/a.1896701010557789/2070383359856219/?type=3 OPEN LETTER TO NRM SUPPORTERS - NATIONAL ROBBERS MOVEMENT. .................................................................................. Last week of March, a friend told me to pray for Uganda.  I told him that he was an Idiot and we have prayed for too long and we are still hungry and sick and Jesus is not coming soon to liberate us. He then ignored the STUPID and sent me a picture we all now know.  It got me totally messed up.  This guy was telling me to pray then sends a picture of men bowing down in blood.  He might have meant guns but I blocked him because his utterances of praying for Uganda were misplaced. I unblocked him 3 weeks later and asked him about praying and assassinations.  His reply "eithrr prayers or guns or both". I hate violence with a passion.  So he is now blocked in like FOREVER. Do you feel safe?  Do not feel safe. Uganda regim...

CAN I CHANGE MY MIND ABOUT THE INHERITANCE I RECEIVED AND ASK FOR SOMETHING ELSE ?.

#iip_updates . #Information_is_Power . Read more here https://informationispowah.blogspot.com/2023/07/can-i-change-my-mind-about-inheritance.html in the link. #we_inform_the_uninformed . Okello lost his wife 20 years ago and decided to only focus on their Mateo, Yona and Yosefu. 20 years later, Okello had 7 acres of land, a successful poultry business, and sinotrucks for hire. Early this year, Okello got a call telling him that one of his trucks knocked a boda boda. Okello decided to rush to see if he could sort it out before police became involved. Unfortunately, he never made it, as he was entering the main road, another trailer rammed into him and killed him instantly.   After Okello had been laid to rest, his sons sat down and divided the property amongst themselves. However, of late, Yosefu the last born has started complaining that he was cheated, and he wants to be given something else because most of the chicken in the chicken business died of a fever.   Can ...