Bankruptcy is a financial condition of a company that has been legally declared unable to pay debts to creditors. In my country, to be declared bankrupt, it must go through a court/legal process, and must go through various evaluation processes of the company's condition, after which a curator will be appointed to manage the company's assets and sell them to the public, the proceeds from the sale of assets will be paid to the creditors according to priority. If there is an excess, it will be given to the company owner, while if the proceeds from the sale are insufficient, the debt will be suspended or written off. So, in your country, does the bankruptcy process have to go through a legal process?
