Case of bankruptcy try a legal proceeding for someone otherwise company that could have been judicially announced struggling to spend its debts. Declaring case of bankruptcy economically and you will legitimately legitimizes the latest debtor’s insolvency and you will assists create a formal installment policy for the fresh new borrower. The debtor might be able to create payments having fun with nonessential possessions and other money channels.

There are a way to document case of bankruptcy, but this short article focus on A bankruptcy proceeding and you can Chapter 13 because these are among the most frequent types of personal bankruptcy submitted.