In this written work attention is focused on corporate bankruptcy. Bankruptcy is an integral part of the lives of numerous companies and of certain countries and citizens. Although companies, as legal entities, were created on the assumption of going concern, that is, assuming an endless time of horizon (i.e., business) in practice, there are only rare societies that have been able to survive for long. So bankruptcy is part of everday life and as such it becomes interesting to economists as well. Bankruptcy occurs because of default, and the reasons why bankruptcy comes are: inability to pay, indebtedness and threatening inability to pay. The bodies of the bankruptcy proceeding are: the court, the bankruptcy trustee and the board of creditors. All bodies have various functions, some of which are; for the court: decides on the initiation of a preliminary proceeding in order to determine the existence of a bankruptcy reason and conducts this proceeding, decides on the opening of the bankruptcy proceeding. The bankruptcy trustee has the rights and obligations of the debtor body of the legal entity, unless otherwise provided by law, he represents the debtor with the power of the legal representative. The Board of Creditors is made up of individuals representing top- rated bankruptcy creditors, small-claims bankruptcy creditors, and previous debtors. The petition for bankruptcy proceedings and the filing of bankruptcy claims are special types of filings that are required by law to be submitted on the prescribed form. Files that must be filed in bankruptcy on the prescribed forms are available on the e-Bulletin of Courts website. Every company that goes bankrupt is in business and financial difficulty, but each of these companies may not be economically inefficient. Bankruptcy proceedings should aim at saving economically efficient bankruptcy debtors, but precisely classifying debtors as economically efficient and economically ineffcient proves to extremely challenging.