bankruptcy case

A bankruptcy case is a legal process where individuals or businesses unable to pay their debts seek relief through the courts. It involves the orderly liquidation or reorganization of assets to satisfy creditors, providing a chance to resolve financial obligations when debts exceed resources. The process is governed by federal laws, with different types of bankruptcy (like Chapter 7 or Chapter 13) tailored to specific situations. Ultimately, a bankruptcy case helps manage debt burdens, offering a fresh start or manageable repayment plan while protecting certain rights of both debtors and creditors.