When an individual, company (or other legal entity) is designated as bankrupt, the debtor is considered to be legally impaired to fulfill its financial obligations to its creditors. Bankruptcy law provides a measure of legal protection for both the debtor and its creditors, by laying out a legal framework through which a debtor can develop a plan to orderly resolve its debts. This plan will involve the division of the debtor's assets among its creditors. Implementation of the plan is typically supervised or subject to oversight, with the goal of treating all creditors with some degree of fairness. In some instances, a debtor in bankruptcy can remain in business and continue generating revenue, but designate portions of the revenues to resolving outstanding creditor claims. Conversely, in other bankruptcy proceedings, a debtor can have some or all its financial obligations discharged, following distribution of the debtor’s assets. In either case, the options of the debtor under bankruptcy law are tied to the legal posture of the debtor and its creditors in the proceedings. Bankruptcy law varies by country.

• U.S. Bankruptcy Process Overview
  Bankruptcy overview - The Administrative Office of the U.S. Courts.
• Chapter 7 - Liquidation
  Debtor’s assets liquidated and distributed to creditors.
• Chapter 13 – Adjustment of Debts of an Income Earner
  Income earner can develop plan to repay some or all debts.
• Chapter 11 - Reorganization
  Debtor-business reorganizes and pays creditors over time.

• International Trade Law & Insolvency
  UNCITRAL guide on cross-border insolvency matters.
• Canada Bankruptcy Process Overview
  Canada’s Office of Superintendent of Bankruptcy.
• U.K. Insolvency Proceedings Guide
  U.K. Department of Trade and Industry-Insolvency Service
• Mexico Insolvency Process Overview
  International Association for Insolvency Regulators (IAIR)

• How does bankruptcy affect my credit score?
  

  Bankruptcy is typically the last resort for an individual or business when finances have spiraled out of control. By the time a bankruptcy attorney is consulted, your financial situation may have been heading southward for quite a while, and your credit rating is probably bad enough that having a bankruptcy lawyer file..