Bankruptcy allows businesses that cannot meet their financial obligations to be excused from repaying some or all of their debt.
Generally speaking, there are two types of bankruptcy. In a liquidation bankruptcy, debtors must surrender their property, which is sold, and the proceeds distributed to creditors. In return, all debts are permanently discharged. In a reorganization bankruptcy, debtors are allowed to keep their property. But the debtors must agree to an installment plan to repay creditors a portion of the amount they owe.
Bankruptcy procedures are complicated as it involves many other laws and an error at any procedure may lead to disastrous consequences that are why, hiring an experienced law firm is the right answer.