A legal proceeding involving a person or business that is unable to repay outstanding debts.
The bankruptcy process begins with a form filled by the debtor (most common) or on
behalf of creditors (less common).
According to federal law a person's assets are handled over to a trustee and used to pay
the outstanding debts,this usually occurs when someone owes more than they can repay.
In other words we can say that it is a legal process in which a person or firm declares
inability to pay debts and in return all of the debtor's assets are measured ,evaluated
,liquidated and are distributed to creditors.
The assets of debtor are used to repay a portion of outstanding debt.Upon the successful
completion of bankruptcy proceedings, the debtor is relieved of the debt obligations.
Bankruptcy offers a chance to an individual and business so that they can land successfully
It can benefit an overall economy by giving persons and businesses another chance and
providing creditors with a measure of debt repayment.