bankruptcy codes

Bankruptcy codes are legal rules that govern how individuals and organizations resolve their debts when they cannot pay them back. They provide a structured process to either help debtors reorganize and repay their obligations or distribute their assets fairly among creditors if repayment isn't possible. The codes set out different types of bankruptcy, like Chapter 7 (liquidation) and Chapter 13 (reorganization), each with specific procedures and criteria. Overall, bankruptcy codes aim to promote fairness, encourage responsible financial management, and give debtors a chance to start anew while protecting creditors' rights.