Bankruptcy Law (Bankruptcy)

Bankruptcy law provides a legal process for individuals or businesses unable to pay their debts. It allows them to either reorganize their finances or liquidate assets to satisfy creditors, offering a fresh start or relief from overwhelming debt. The process is managed by courts and includes different types, such as Chapter 7 (liquidation) and Chapter 13 (reorganization). Bankruptcy helps balance the interests of debtors and creditors, ensuring fair treatment while providing a structured way to resolve financial distress. It is a legal tool to manage insolvency and restore financial stability.