Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay their creditors. A declared state of bankruptcy can be requested or initiated by the bankrupt individual or organization, or it can be requested by creditors in an effort to recoup a portion of what they are owed. However, in the overwhelming majority of cases, the bankruptcy is initiated by the “bankrupt” individual or organization.
People facing debt traps often find no ways to come out of it. They constantly have to face harassment by creditors and have to suffer because of the lack of awareness of their rights as a debtor.