There are two ways a person can become a bankrupt. The first and more common way is to have the person file a petition to voluntarily go bankrupt. The second, and rarely used way, is for creditors to ask the Court to make an Order that a person is bankrupt. In both these cases a Bankruptcy Trustee is required to administer the bankruptcy. (see Filing Bankruptcy)
The two main types of bankruptcies available to individuals deal with different debt situations in different way…