Types of Bankruptcy

Bankruptcy can be categorized into various types keeping in view several factors in mind. For example, on the basis of the parties filing for bankruptcypetition, there are basically two types of bankruptcy – voluntary and involuntary. On the other hand, based on the nature of judgment by the court, the bankruptcy can be categorized in two forms – a reorganization bankruptcy and a liquidation bankruptcy. Let’s go exploring them.

Personal Bankruptcy

With the growing trend of taking various kinds of loans to meet the needs of high standard living, more and more people in America now have trapped themselves into the nasty pile of various kinds of debts. Sometimes, the debts become so high that they start controlling you instead of you controlling them. This is where personal bankruptcy emerges as the only solution that can bring you the much-desired relief from the heavy burden of debts.