Bankruptcy is a term often related the state of being seriously in debt with no realistic opportunities to settle them down. However, as long as laws are concerned, bankruptcy is defined as a legal process with which can release debtors from most obligations to creditors. In other words, it is seriously a final-resort solution to provide relief and allow you to make a fresh start from your debt issues.
Types of bankruptcy
There are two types of bankruptcy:
- Voluntary bankruptcy:
When talking about bankruptcy, people often refer to voluntary bankruptcy which means you file for bankruptcy then the petition to the Court for any amount of money that you cannot pay (within limits).
If you decide to go for this option, please ask for professional help from business law firms or experts to find better available alternatives.
- Forced bankruptcy:
Contrary to voluntary bankruptcy, this type refers to a bankruptcy that is filed to the Court by a creditor to make you or your corporation bankrupt. This is only realized when you are given a Bankruptcy Notice for a Court judgement.
Might you get this Notice or Court papers relating to bankruptcy, stay calm and ask for legal assistance from your business lawyer