Bankruptcy Procedures

Bankruptcy procedures are legal processes that individuals or businesses can use to manage or eliminate debt when they cannot pay their creditors. The main types are Chapter 7 (liquidation) and Chapter 13 (reorganization for individuals). In Chapter 7, assets may be sold to pay debts, while in Chapter 13, a repayment plan is created to settle debts over time. The process usually begins with filing a petition in bankruptcy court, followed by meetings with creditors and court hearings. After successful completion, individuals or businesses can receive a discharge, freeing them from certain debts and allowing for a fresh financial start.