The state of legal insolvency with assets taken over by judicial process so that they may be distributed among creditors.

Bankruptcy is a legal process performed under the Bankruptcy and Insolvency Act. Because of inability to pay debts, all assets are assigned, except those exempt by law, to a licensed trustee in bankruptcy. A Business Bankruptcy is a bankruptcy (under federal legislation) which is chiefly attributable to the liabilities incurred as a result of the c [..]