Insolvent

What is the difference between Bankruptcy and Bankruptcy Protection that I hear in the news recently?

In recent news, companies could be forced to Bankruptcy. Is this the same as "companies can be forced into Bankruptcy Protection"? I thought Bankruptcy protection is "PROTECTION" against Bankruptcy?

Public Comments

1. ???
2. They are the same thing. Bankruptcy protection is basically a term used because once you file for bankruptcy, your creditors are not allowed to contact you or try to collect anymore. Please consult a bankruptcy attorney for more clarification. All attorneys usually give a free consult. Good luck.
3. Bankruptcy protection also usually refers to a type of bankruptcy where the company is protected from creditors for a period of time. Bankruptcy liquidation is where the company is dismantled and assets distributed to the creditors.