A person is declared bankrupt by the order of the court in accordance with the federal laws if that concerned person is not able to pay his debts and loan and gives away his financial controls and assets in return for a protection against legal action taken by the creditors by practicing a court order agreement. Bankruptcy court order agreement are heard and resolved by the state federal magistrate’s court under specified forms, rules and procedures.
The three conditions which court demands to verify before issuing an agreement are:
- If you are the same person who owes the debt
- If the amount shown by the creditor in the bankruptcy notice is correct or not
- If you are (or not) able to pay the loan
If these three conditions are verified and person agrees to be declared bankrupt, then the court issues the agreement and appoints a trustee to manage your financial affairs and take over the hold of your assets.
[Also Read: Bankruptcy Court Option Agreement]
Sample for Bankruptcy Court Order Agreement
A sample of the agreement can be downloaded from below.
Download this USA Attorney made original Agreement for only $9.99