Bankruptcy and Foreclosure

Bankruptcy is a legal process that helps individuals or businesses unable to pay their debts, providing a way to either eliminate or reorganize their debts under court protection. Foreclosure, on the other hand, occurs when a lender seeks to recover the balance of a loan by forcing the sale of a property after the borrower fails to make mortgage payments. In foreclosure law, the lender initiates this process to reclaim the property, typically leading to a forced sale to satisfy the outstanding debt. Both processes are significant legal options for dealing with financial difficulties, but serve different purposes.