What is the so-called Deep State? Here's what you need to know about an obscure term making the rounds in the White House President Trump's Allies Keep Talking About the 'Deep State.'
The investors who take the least risk are paid first. For example, secured creditors take less risk because the credit that they extend is usually backed by collateral, such as a mortgage or other assets of the company. They know they will get paid first if the company declares bankruptcy. Secured Creditors-often a bank, is paid first. 2  Unsecured Creditors-such as banks, suppliers, and bondholders, have the next claim. 3  Stockholders-owners of the company, have the last claim on assets and may not receive anything if the Secured and Unsecured Creditors' claims are not fully repaid.
You go bankrupt via a court order, either by applying yourself or when your creditors (the people you owe money to) approach the court to ask for you to be made bankrupt. The bankruptcy order shows on your credit report for a minimum of six years from the date of bankruptcy order. During the period of bankruptcy a number of restrictions apply. For example, you are legally bound to tell a lender you are bankrupt if you are applying for credit of more than Â£500.