Bankruptcy
Bankruptcy happens when a person or a company fails or declares incapable of paying their creditors. In relation to this, creditors may file a bankruptcy petition versus the debtor. But when a company and an individual files for bankruptcy, certain rules take effect that disallow creditors from taking further steps in collecting the debt without approval from the court.
Delta - Post Bankruptcy
The good news is that bankruptcy can be avoided, that is practising good money management. One good idea is avoiding using credit cards—unless you have money that settles for it and avoiding high-risk investments to name a few. Filing for bankruptcy is a serious matter with realistic consequences and should be dealt in carefully.