Question

Bankruptcy refers to

• A. the legal processes related to insolvency
• B. theft in a Bank
• C. closure of a bank
• D. Loss in the bank

Hint:

Bankruptcy is a legal declaration that someone cannot pay their debts. It is not related to bank theft or closure.

Answer 1

The Correct Option is A

Bankruptcy is the situation where an individual or business cannot repay the debts it owes to creditors.
It is declared through a legal process and is handled under insolvency laws in India (like the Insolvency and Bankruptcy Code, 2016).
It does not refer to theft, closure, or losses in a bank itself. Instead, it’s about a person or company being unable to pay their debts.