Bankruptcy is a legal proceeding that is available to help a person to cope with a financial crisis. One of the main purposes of bankruptcy legislation is to afford the opportunity to a person, who is burdened with debt, to free him or herself of the debt and start over. To file for bankruptcy a person has to be insolvent, which means:
A person shall owe at least $1,000
Not be able to meet debts when they are due to be paid