Bankruptcy is a legal process that allows individuals or businesses to seek relief from their debts. It provides a way to wipe out debts or make a plan to repay them, offering a fresh financial start.

In South Africa, you can file for bankruptcy by submitting a petition to the High Court. You’ll need to provide evidence of your insolvency, such as unpaid bills and a list of assets and liabilities.

Once you file for bankruptcy, an interim order is issued, and a trustee is appointed to manage your assets and debts. Creditors are notified, and legal actions against you are halted.

Filing bankruptcy initiates the legal process of debt relief. Your assets are assessed, and a repayment plan may be set up, or your debts may be discharged entirely.

If you declare bankruptcy, your assets will be liquidated to pay off creditors, and you’ll face restrictions on future borrowing and financial activities.

To declare bankruptcy in South Africa, you’ll need to file a petition with the High Court, providing evidence of your insolvency and a comprehensive list of assets and debts.

You can file for bankruptcy on your own by preparing the necessary documents and submitting them to the court. However, it’s advisable to consult a legal expert to guide you through the process.

The downside includes a negative impact on your credit score, loss of assets, and restrictions on future financial activities, including taking out loans or credit.

Chapter 11 is a type of bankruptcy in the United States that allows businesses to restructure their debts while continuing operations. It’s not applicable in South Africa.

Secured creditors usually have the first claim on assets, followed by unsecured creditors, and then shareholders.

The cost can vary depending on the complexity of your case and whether you hire a lawyer. Court fees are also applicable.