Bankruptcy is a process where the debtor is publicly recongnised to be insolvent.
The Court usually appoints the Official Assignee to administer the bankruptcy estate which includes selling of assets, registration of creditors' claims and paying out dividends to his creditors. This is upon the application or petition of a creditor. The creditor taking out the application for bankruptcy would have issued a notice known as a Statutory Demand, demanding payment from the debtor. If the payment is not met within the time stated in the Statutory Demand, a petition will be filed in Court and the hearing date given. If payment is not made by the hearing date the Court may proceed to make a Bankruptcy Order.