Bankruptcy Laws

Bankruptcy laws are legal provisions that help individuals or businesses unable to pay their debts find relief. They allow debtors to either reorganize their finances to repay creditors over time or liquidate assets to settle debts. In the U.S., there are different types of bankruptcy, like Chapter 7, which wipes out most debts, and Chapter 13, which creates a repayment plan. Bankruptcy provides a fresh start while balancing the rights of creditors. It can affect credit ratings, but it is also a legal way to manage overwhelming financial burdens and regain stability.