Knowing The Law – What Are The Steps To Declaring Bankruptcy?

Insolvency law, necessarily involves a consideration of the position and concerns of the debtor, the creditors and the general community. Insolvency law must seek to balance the interests of these parties and there is a need for balance because insolvency necessarily involves a limited amount of money to be divided among those seeking repayment of their debts.

Step 1: Understand the purposes of the law of bankruptcy

The first step to filing for bankruptcy is to understand the aims of bankruptcy law. Ultimately, the law seeks to provide an equal, fair and orderly procedure in handling the affairs of an insolvent person or entity and that the assets of the debtor are shared equally amongst the creditors. The system also favours a situation where the estate is administered with as little delay and expense as possible and that the administration of the estate is conducted in a fair and independent … Read More