Decision of applying for Bankruptcy declaration is very tough because it ruins all your status in society, among your friends and family, but it helps you in getting rid from suffocation of paying debts. After declaration of bankruptcy, you can get relief from irritation given by your creditors and debenture holders. Declaring yourself bankrupt can be an arduous decision, but at the same time it also fills your life with relief and hope. Bankruptcy declaration provides you fresh chance to get a new start to business, in a new environment, with new strategies and opportunities.

One must perform SWOT (strength, weakness, opportunity, threat) analysis before starting new business after bankruptcy. Strength and weakness are internal in nature while opportunity and threats are affected by external surroundings. A rule of Chapter 7 Bankruptcy offers eligible debtors the ability to get them virtually declared as bankrupt, so that he can enjoy forgiven debt and liabilities, but this rule have few exceptions regarding preferential payments. Those debtors who are not eligible or not interested to apply for bankruptcy under Chapter 7 can apply for it under provisions of Chapter 13, which include appointment of official liquidator for repayment of debts and liabilities from auctioning assets and private property of debtor.

General instruction for applying for bankruptcy declaration-
1 You need to make decisions regarding the type of bankruptcy you want to apply for. It can be filed under chapter 7 or chapter 13.
2 You must make a list of your liabilities and debts including preferential payments.
3 You must make another list of assets available for paying debts; this list must include your personal property which is liable according to chapter 7 and chapter 13.
4 Collect copies of all legal documents including paycheck stubs of current year, banking statements, filed tax returns of business, HUF and personal . .
5 Read and download necessary forms and formalities of federal bankruptcy act.
6 Deliver signed papers of your local business to the Bankruptcy Court according to laws of your country. You are not require to get a lawyer for this purpose court may allow you to do it on your own
7 Attend all meetings of creditors, debenture holders as instructed by the law court. Present your legal power of attorney to court. If you complete all formalities of court on timely and regular biases you can get decision within five to six months or less.