When many people hear the word “bankruptcy,” they usually think of Chapter 11 bankruptcy, which businesses file. That process involves financial restructuring and “reorganizing” until the company is, ideally, on more solid footing and able to pay its debtors.
Going bankrupt might seem like an extreme but attractive way to wipe your financial slate clean, but it’s not a decision to take lightly. Here’s how it works.
When Should I File For Bankruptcy?
The Balance has a comprehensive checklist of the level of need you need to exhibit before you might successfully be approved to file for bankruptcy. (Unless a creditor or agency petitions a court to impose bankruptcy on you.)