Bankruptcy petitions

A bankruptcy petition is a formal request filed by an individual or business in court seeking legal relief from debt obligations they cannot repay. The document initiates bankruptcy proceedings, allowing the debtor to either reorganize their debts or liquidate their assets to pay creditors. In the U.S., there are different types of bankruptcy, like Chapter 7, which involves asset liquidation, and Chapter 13, which allows for a repayment plan. Filing a petition aims to provide a fresh financial start while ensuring fair treatment of creditors.