Bankruptcy Filing

Bankruptcy filing is a legal process that allows individuals or businesses unable to pay their debts to seek relief from creditors. It provides a fresh start by either reorganizing debts or liquidating assets to repay creditors. There are different types of bankruptcy, such as Chapter 7, which involves selling assets, and Chapter 13, which allows for payment plans. The process generally includes submitting financial information to a court and may result in reduced debts or a structured way to manage payments. While it can temporarily impact credit ratings, it can ultimately lead to financial recovery.