Disclaimer & Affiliate disclosure: The information provided on this post is for general informational purposes only and should not be considered financial or legal advice. Always consult with a financial advisor or attorney before making any financial decisions. Some of the links in this post are affiliate links, meaning, at no additional cost to you, we will earn a commission if you click through and make a purchase.
When an individual or an entity is unable to repay its debts, they may declare bankruptcy.
A court is usually involved in the mediation process after a bankruptcy is declared.
After the lender files a lawsuit against the borrower due to non-payment, the court considers the individual or company bankrupt.