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The main sources of these debts are poor decision making, mismanagement, poor market condition, and personal problems. There are two types of debts, secured and unsecured debts. In bankruptcy settlement, secured debts are paid first.
Bankruptcy is the last resort. Alternatively, a debtor can enter a scheme of arrangement with creditors, which is called the Part X Arrangements. The three arrangements are composition, deed of assignment, and deed of arrangement. The arrangement can help the debtor avoid bankruptcy by creating a new way that is acceptable to both parties.
Bankruptcy or being bankrupt is not a crime...
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