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Bankruptcy is an extreme financial move taken by individual after exhausting all other options. It is a move that tends to give an individual another opportunity to reorganize his financial entails court protection from creditors who are seeking to have their money back while at the same time enabling the creditors seize some of your property or renegotiate your payment plan.
There are two common types of bankruptcy that can be filed: chapter 7 and chapter ter 7 gives a debtor an opportunity to emerge out of a financial crisis and start afresh whereby all non-exempt property of a debtor is sold and the proceeds distributed to the creditors. It is relatively faster to finalize compared to chapter 13. In some cases the debtor has no assets to loose hence giving him a quicker fresh financial start.