Bankruptcy is a legal way to declare the inability of a person or a business to pay off his debts to creditors. It is usually the last option that anyone chooses. Bankruptcy gives a chance to a person to start over afresh with his finances by clearing all the debts or allowing a debtor to pay back all the debts over a certain period of time.
By filing for a bankruptcy case, one gets to avail several bankruptcy options.
The two most preferred bankruptcy options are explained as follows: