Bankruptcy Rules

Bankruptcy rules are legal guidelines that govern the process individuals or businesses follow when they cannot repay their debts. These rules aim to provide a fair way for debtors to discharge or restructure their debts while protecting creditors' rights. There are different types of bankruptcy filings, such as Chapter 7 (liquidation) and Chapter 13 (reorganization), each with specific requirements and outcomes. Typically, a bankruptcy court oversees the process, ensuring that debts are resolved in accordance with the law, allowing debtors to regain financial stability and creditors to recover what they can.