Bankruptcy implies that one is no longer able to pay for debt owed to other people.
This is due to the fact that liabilities exceed assets as a result of poor financial management.
The debtor has therefore to file a petition in court to stop the creditors from pursuing him any further.
This could be done voluntarily by the individual or business.
An official is appointed by the court to foresee that the people you owe are relieved of any duty towards the estate.
Bankruptcy in most cases begins with the creditor filing a debt collection request in court against the debtor.
This is done with a special official known as the debt collection officer.
These claims however do not require any proof for them to have the file in court.
The court will then summon the debtor to court and in case the allegation made is false, they can object orally or have a written document.
This too is done in court via the debt collection officer and has to be done within ten days of filing his claim.
In cases where the allegations happen to be true, they have to acquire a court order dismissing the objection in order to have his claims enforced in court for payment.
This can be done through several ways.
Bankruptcy allows them to petition the court to have their claim enforced in order for the debtor to pay the debt.
The creditor could also choose to file a simple lawsuit.
The creditor could use a signed document to petition the dismissal of the objection.