Typically, normal debtors are prohibited from filing for bankruptcy protection unless their liabilities outweigh their assets. It's false.
A business or person that owes money is called a debtor. If the debt is in the form of a loan from a financial institution, the debtor is referred to as the borrower, and if the debt is in the form of securities, such bonds, the debtor is referred to as the issuer. A voluntarily petitioner for bankruptcy protection is likewise regarded as a debtor for legal purposes.
Not making a debt payment is not a crime. Except in particular bankruptcy circumstances, debtors are free to prioritize their debt repayments. However, if they don't adhere to the conditions of their debt, they risk incurring fees and penalties as well as having their credit scores affected.
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