👉 Prebankruptcy is a legal process where an individual or company files for bankruptcy protection in order to avoid declaring bankruptcy and paying off debts. The goal of this process is to provide individuals with financial relief while still preserving their assets, which may include personal property, businesses, and investments. Prebankruptcy allows creditors to extend credit to the debtor while they are in bankruptcy proceedings, but ultimately, the individual or company will face the full force of the bankruptcy court's judgment.
