Bankruptcy is a legal proceeding involving a person or business who is unable to repay their outstanding debts. The process can be initiated by either the debtor (which is more common) or a creditor who files a petition with the court. Once the petition is filed, the debtor’s assets are assessed, and valued – these assets are then used to repay the outstanding debts. Once the process has been completed the debtor is relieved of all debt obligations that existed prior to becoming bankrupt, other than excluded debts.