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).
personal bankruptcy exemptions
All the assets, including property, that cannot be sold or seized to clear the debts of a debtor who has filed for bankruptcy forms the part of bankruptcy exemption.