bankruptcy policy

Bankruptcy policy provides a legal process for individuals or businesses unable to pay their debts. It aims to offer a fair resolution, allowing debtors a fresh start while ensuring creditors recover as much as possible. The process involves submitting a legal petition, after which debts may be reduced, reorganized, or discharged. Bankruptcy laws set the rules for how debts are handled and protect both debtors and creditors’ rights. Overall, bankruptcy helps stabilize the economy by providing a structured way to resolve financial difficulties systematically and fairly.