1. A formal request by an individual or a business to a
bankruptcy court to declare
bankruptcy and to discharge or restructure
debts (after repayment is made insofar as possible).
2. A formal request by an individual or a business'
creditors to a bankruptcy court to declare bankruptcy and to require
repayment or restructuring of debts. Some businesses and individuals (such as fishermen in Canada) are exempt from this type of forced bankruptcy.