Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay its creditors.A legal proceeding that relieves an individual or corporation of debt by handing over all belongings to the court that in turn distributes them to creditors.In Indian legal system there is no regulation or statute legislated bankruptcy . Winding up of companies is in the jurisdiction of the Courts which can take a decade even after the Company has actually been declared insolvent.