1.What is bankruptcy?

Bankruptcy refers to a process where a debtor will be declared a bankrupt pursuant to a court order on the creditor’s petition or the debtor’s petition. All the unsecured property belonging to the bankrupt will be vested on the Director General of Insolvency (DGI) and the DGI has the responsibility to realize all such assets. The proceeds of the sale will be distributed among creditors who have filed their proof of debts and the debts have been admitted by the DGI.