What is Bankruptcy?
Bankruptcy is a legal status of a person or other entity that cannot repay the debts it owes to creditors. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor.
Bankruptcy is not the only legal status that an insolvent person or other entity may have, and the term bankruptcy is therefore not a synonym for insolvency. In some countries, including the United Kingdom, bankruptcy is limited to individuals, and other forms of insolvency proceedings (such as liquidation and administration) are applied to companies. In the United States, bankruptcy is applied more broadly to formal insolvency proceedings.
I would like to put forward an idea which may be debatable but holds my complete conviction. I would like to describe complete bankruptcy as a state you find yourself in when you are bankrupt on all the following three fronts:
For, I truly believe that a business doesn’t fail in isolation. With it a person, in most cases than not fails on the personal and health fronts as well. And no matter how silly it may sound, the latter two are much more serious than the former. And yes, I am facing bankruptcy; the complete one. And it much more than a nerve wracking, heart pounding experience. It actually is soul thrashing. The complete bankruptcy is potent enough to challenge your very sanity. After all even a roller coaster ride could be nerve wracking and heart pounding! And what could be even more challenging is to face all of this at a pretty young age.
Financial Bankruptcy alone, is not a nice situation to be in after all. But worse is when you are accused of being emotionally bankrupt as well by the very people whom you consider to be truly yours. The only few people you claim to love. You feel anger and despair swell within yourself. There’s an entire world to fight on the financial front; the customers, the suppliers, the financiers, the employees taking their fight to various forums like police, politicians, courts and in extreme cases to the goons! Managing the outer world is a herculean task already and now your spouse and family seems to be behind you as well. They accuse you of being incommunicado, of being selfish and self consumed. Your spouse accuses you of pushing her away when faced with professional problems. You are no good as family and your professional life sucks as your business is being torn to shreds. Nobody seems to understand the turmoil you are going through. Your entire world has come crashing down and just because of your business failure? Nobody, not even your family is able to support you through the headwinds you are facing. Not all entrepreneurs who have been blessed with bankruptcy face this kind of a situation. But there are quite a few like myself who are capable enough to land in such a quandary.
Let’s try to list what all I’ve lost;
- My partner of 15 years
- A planned family
- Parent’s & In laws’ trust & confidence
- A family house of my in laws
- An investment property of my parents
- Acres of family farm land
- Couple of cars
- Piled up debts of more than 1 Million USD
- Health; I had ballooned to a 100 kg!
- Was addicted to alcohol for over a year (much in control now)
All summed up in twelve lines, so convenient. I wish it could be as convenient to live through it. It’s not; I’m going through this as I’m writing about it. And I have come to a point where I have realized that nobody is at fault except for me. Only ME! And it pains. Did all of this really happen in the few months over which the business deteriorated or it started way before that? The answer is, it started way before. More on that later…
Originally published at estd1984.wordpress.com on November 28, 2015.