Becoming bankrupt

Description

Becoming bankrupt is a legal process by which individuals or organizations declare inability to meet financial obligations, enabling structured resolution of unmanageable debt. The essential action involves formally filing for bankruptcy, triggering court-supervised asset evaluation and distribution to creditors. This strategy provides relief from creditor pressure, halts further legal actions, and offers a potential fresh start, while ensuring equitable treatment of creditors and facilitating financial rehabilitation or orderly dissolution of insolvent entities.