Bankruptcy is usually discussed as if there is only a single option: Chapter 7 liquidation. If you've ever seen someone go through Chapter 7, you might be put off by the idea of needing it yourself. You don't always lose a lot in this form of bankruptcy, but there is a potential that you will have to give up some of your assets.
Many people become less cognizant as they age. Although it is difficult to think about, mental incompetence could happen to anyone, including you. Mental incompetence could make it difficult for you to care for yourself, manage your finances and make decisions about your health care. Once legally incompetent, you will also be unable to sign legal documents.
Businesses sometimes struggle with money due to a variety of issues, such as the economy stumbling or having a hiccup with third-party vendors. Whatever the reason is, if a business gets too far behind on payments or isn't bringing in enough profits, it may need to turn to bankruptcy.