When bankruptcy is declared all debts are not automatically discharged. The decision to declare consumer bankruptcy begins the next stage of the proceedings, which may end with the discharge of liabilities.

The procedure itself begins with submitting an application. After submitting it, the court will declare the applicant bankrupt.

What happens after bankruptcy is declared?

After bankruptcy is announced, the bankruptcy trustee takes over the management of the bankrupt’s assets.

It is worth knowing that lack of assets is not an obstacle to conducting bankruptcy proceedings. However, lack of assets may speed up the procedure.

However, if any property exists the trustee will proceed to verify and value it and then sell it.