What is Bankruptcy?


Bankruptcy is a process where people who cannot pay their debts give up their assets and control of their finances, either by agreement or court order, in exchange for protection from legal action by their creditors.

Which court?

A bankruptcy case may be heard by the Federal Court or the Federal Circuit Court. Most bankruptcy
cases are heard by the Federal Circuit Court.

How does the Court declare someone bankrupt?

A person who claims that you owe them money can ask the Federal Court or the Federal Circuit Court to declare you bankrupt. This person is called a creditor and their application is called a Creditor

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