Bankruptcy is the state of being legally unable to pay debts. The term also refers to the legal process applied to those who are unable to pay debts. A court may declare both individuals and businesses to be bankrupt. The indebted person or business involved in bankruptcy proceedings is usually called the debtor, or sometimes the bankrupt. People or businesses that are owed money are called creditors. During bankruptcy proceedings, the debtor is restricted in financial and business affairs. In addition, the debtor's assets and property may be sold as part of a settlement with creditors. Bankruptcy may also lead to criminal charges if there is evidence of fraud or financial misconduct. Bankruptcy laws vary from country to country.