Declaring bankruptcy could a life changing experience? A person is considered insolvent if his or her assets are liquidated to pay off its existing debt. Bankruptcy is filed through a bankruptcy lawyer of a trustee in bankruptcy. The bankrupt person could lose its house and car if he can’t settle on them. The bankrupt person will have to pay a fee for a minimum of nine months. The trustee fees depend on the bankrupt family status, income and the assets that are being kept. The bankrupt person has to report its income and expenses, attend two counseling session and will be put under minor restriction such as he or she can be a director of a company, can’t apply for credit while in bankruptcy, etc…