Technical Bankruptcy

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DEFINITION of 'Technical Bankruptcy'

The state of a company or person who has defaulted on a financial obligation and would be declared bankruptcy if the creditor makes a claim through the courts.

BREAKING DOWN 'Technical Bankruptcy'

In other words, a company or person experiencing technical bankruptcy shows all the signs of bankruptcy, but just hasn't been declared bankrupt by the courts.

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RELATED FAQS
  1. Is my IRA protected in a bankruptcy?

    All types of individual retirement accounts, or IRAs, recognized under the federal tax code enjoy substantial protection ... Read Full Answer >>
  2. How do I avoid a tax lien on my property?

    The best way to avoid a tax lien on your property is to make sure you pay all your state, municipal and federal taxes in ... Read Full Answer >>
  3. What is the best way to start to rebuild your credit after a bankruptcy?

    Bankruptcies can be devastating to your credit score. Even worse, a bankruptcy will be listed on your credit report for between ... Read Full Answer >>
  4. What are the differences between Chapter 7 and Chapter 13 bankruptcy?

    In the United States, the most common kinds of personal bankruptcy filings are under Chapter 7 or Chapter 13 proceedings. ... Read Full Answer >>
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    The financial consequences of filing for bankruptcy are substantial and can be long-lasting. They include impacts on your ... Read Full Answer >>
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