Bankruptcy Processes

Bankruptcy is a legal process where individuals or businesses facing overwhelming debt seek relief from their obligations. It involves filing a case in court to either restructure debts (Chapter 13) or liquidate assets to pay creditors (Chapter 7 or 11). The process helps protect against creditor collection actions and provides a structured way to resolve debts fairly. Once completed, it can discharge some or all debts, giving the filer a fresh start. Bankruptcy is a tool for financial recovery, balancing debt repayment with legal protections, and ensuring creditors are treated fairly under court supervision.