Guide to bankruptcy. : Bankruptcy - a legal means of debt relief. Bankruptcy may seem like a simple solution out of a situation where you have no money to pay debts. However, bankruptcy should not be taken lightly. Once you have registered for bankruptcy, then be prepared for many unexpected consequences. Before you plead bankruptcy, you must be prepared in advance for a very long and painful process. Bankruptcy allows a person to start a new business, forgetting about the old debts. Although the bankruptcy and frees you from the main part of the debt, but, nevertheless, some debts you still have to pay. Therefore, before you recognize yourself and your company bankrupt, check which of the debts you still have to pay. During this process, the entrepreneur may try to pay some debts. Most of the assets and cash used to repay debt, although some of the assets are not entitled to be paid for their redemption, it depends on the specific laws of the State. Once the entrepreneur begins to process paperwork for bankruptcy, the creditors at this time have no right to insist on or demand repayment of their debts. This process has involved government agencies. Perhaps the most important aspect of the admission of bankruptcy, is the easiest way to avoid payment of debts to creditors. But do not forget that, into bankruptcy, you will not easily come out of this situation. The last word rests with the court. If the court finds that the entrepreneur who has declared himself bankrupt is able to repay their debts or at least their partial redemption, it is obligated to make payments. Sometimes even the court can compel the businessman to sell part or all of its assets in the form of real estate, automobile, securities, etc. for payment of debts to creditors.