Question: Why were they declared bankrupt?
Answer: In the majority of cases, they have defaulted on their payments, especially vehicle loans, personal loans and housing loans. It has become so easy to get a loan now, especially car loans.
Car dealers and financial institutions offer such attractive deals that buyers do not even have to put down a deposit to secure a loan. But some of these borrowers do not have the financial means to service the loans. So, when they are unable to make payments after some time, the banks can repossess the car and institute bankruptcy proceedings to recover the loans.
Do you know that people like (president Dwight D.) Eisenhower and Donald Trump were bankrupt before?
Read the rest of the article at New Straits Times
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