What does BANKRUPT LAW mean?

BANKRUPT LAW meaning in Law Dictionary

law associated with bankrupts and treatment against them in courts. A law supplying an answer for the lenders of a bankrupt, and for the relief and restitution of bankrupt himself. a bankrupt law is distinguished from the ordinary law between debtor and creditor, since concerning these three general concepts: (1) an overview and instant seizure of all debtor's property; (2) a distribution from it among the lenders overall, in the place of simply using some from it to the payment regarding the individual complainant; and (3) the release associated with debtor from future liability for the debts then present. The key difference between a bankrupt law and an insolvent legislation, when you look at the appropriate technical feeling of the language, consists in the char- acter of the people upon whom its built to run,