Jurisdictions allow individuals to declare their bankruptcy through a procedure called personal bankruptcy. That simply means that you cannot afford to pay your debts any longer and requires removal of any such obligation by giving up control of your financial assets. You can either do it through a debtors’ petition (doing it yourself) or through a creditors’ petition (someone who you owe money can do so).
chapter 7 personal bankruptcy
Chapter 7 is the most common kind of bankruptcy that is filed by debtors in US. Chapter 7 bankruptcy of the Title 11 entails the United States Bankruptcy Code and it manages liquidation.