In most of the cases bankruptcy report is declared or initiated by the debtor but the creditor can file the bankruptcy report in order to recover his lost assets, whether liquid or fixed, to recover his unconscious and instinctive bankruptcy.

Bankruptcy is a legal process in process which an individual force intentionally when ever get trapped in the complex financial crisis produced due to heavy unpaid debts. Financially a person gets starts afresh after filing for the bankruptcy. In the bankruptcy the person who files the case is called the debtor and to whom he owes the credit are called creditors. Decision of declaring bankruptcy state is very important as all the aftereffects and the out comings of the result should be considered before filing.

Bankruptcy is the option which is taken as the last resort and every one wants to avoid it but as there is no other option one has to declare it due to unavoidable poor financial condition. It is the force driven by the external factor of the individual or an organization which cannot be controlled and then due to these forces one has to think of declaring bankrupt. At most of the time mostly people do not know exactly what they are exactly facing and if there are any other option available instead of going bankrupt, in such cases one should take the bankruptcy advice which will be definitely of great use. 

The very first thing one has to do is to calculate rather evaluate all of one’s assets , liquid and fixed both because it is the only way to know that how much is the ratio or the proportion of the loan you will be able to pay. If there is the possibility to pay bigger portions of your debt by liquidate your assets then just go for it and ask for the specific time period to pay. There is another option of individual voluntary agreement (IVA) in which you go through an agreement between you and the debtor in which 75 percent of the debt will waived off and you have to pay the remaining 25 percent in five years in the shape of fix installments. Bankruptcy law all over the world is the same but to keep the bankruptcy record procedure and some section could differ as the location and circumstances has its own requirements.

Even if the above mentioned option does not appear to be a successful one then there is no other way for you except declaring bankrupt. But in this situation all of your financials even your personal assets will go under this situation. Assets belongs to you even your home will be evaluated only the minor portion which will be sufficient for your daily requirement to live will left and all other will be liquidate to pay off the debts. Only the household minors and your vehicle will be left out which will lead you to earn living. All of the assets will go for the auction in the magazines and newspapers. In one year you will be declared as the discharged bankrupt. After this whenever you will apply for the credit they will know that you are a discharged bankrupt.

During the hard times majority of the people take the word bankruptcy in a negative way, but practically it is a good and legal process to get rid of all the financial worries but only when there is no other way to get out. It is not the end of every thing but it is aimed at the settlement between the debtor and the creditor. The procedure of the bankruptcy is the legislative process of resolving conflict peacefully between two sides. The creditor will seek and recover all the money which has gone and all the financial security and on the other side the debtor will get rid of all the debts and could get start as a fresh to start a new financial term.