Bankruptcy Code (United States)

The Bankruptcy Code in the United States is a set of federal laws that provide legal procedures for individuals and businesses unable to pay their debts. It aims to give honest debtors relief from their financial burdens while ensuring fair treatment for creditors. Bankruptcy offers options like debt discharge (eliminating certain debts) or reorganization (restructuring debts to pay over time). Managed by federal courts, it balances debtors' relief with creditors' rights and promotes a fresh financial start, maintaining a fair and predictable process for resolving insolvencies.