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when total asset can not meet the total liabily it mean company got bankrupt.
A legal proceeding Involving a person or a business that is unable to repay outstanding debts.
- Bankruptcy process begins with a petition filed by a Debtor or on behalf of Creditor.
Inability or insolvency to pay the debts..is called bankruptcy.
Bankruptcy is a settlement of the debts of someone who is wholly or partially unable to repay their debts. The purpose of the bankruptcy is to distribute your assets fairly among your creditors and protect you from these creditors. The distribution is done through a court official, the Official Assignee in Bankruptcy.
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