Bankruptcy Code (U.S.)

The U.S. Bankruptcy Code is a federal law that provides individuals and businesses a way to manage or eliminate their debts when they are unable to pay them. It offers different types of bankruptcy, such as Chapter 7 (liquidation) and Chapter 13 (reorganization), each with specific rules and processes. The goal is to give debtors a fresh start while also ensuring fair treatment of creditors. The Code outlines how debts are prioritized and the steps required to discharge debt or reorganize finances, balancing the interests of both debtors and creditors in the legal process.