11 U.S.C. (Title 11 of the United States Code)

Title 11 of the United States Code, commonly known as the U.S. Bankruptcy Code, provides legal procedures for individuals and businesses that cannot pay their debts. It allows debtors to seek relief through bankruptcy courts, either by reorganizing their finances or liquidating assets to pay creditors. The goal is to provide a fair resolution that balances debtors’ and creditors’ interests, offering a fresh start for some and fair distribution of assets for others. Title 11 outlines filing procedures, eligibility criteria, rights of parties involved, and the different types of bankruptcy chapters available.