Bankruptcy is a legal process in which any organizations that can’t pay debts to creditors, and through filing for it, get relief from any financial obligations. In this, a petition is filed in the court and all the outstanding debts of any company are measured and paid out. For different jurisdictions, the process of filing bankruptcy gets varying, in some cases it is imposed by court order and sometimes it is initiated by the debtors only. For any company, it’s difficult to file bankruptcy and start everything afresh.
Filing a bankruptcy case, any business can improve the overall economy of their business and they also get a second chance to gain access to consumer credit. This may also give creditors relief by getting the right solution to repaying the debt. When it comes to resolving the case, there is hardly any contact between the debtor and the judge until or unless any objection is done by a creditor. The bankruptcy procedure is categorized mainly into two ways- Chapter 7 and Chapter 13. Now, you need to decide what your requirement is and let your debts go off.