Bankruptcy (U.S.)

Bankruptcy in the U.S. is a legal process that helps individuals or businesses who cannot pay their debts to either eliminate or reduce what they owe. It provides a structured way to resolve financial difficulties, offering protections such as an automatic stay that temporarily halts creditors’ collection efforts. There are different types of bankruptcy, like Chapter 7, which involves liquidating assets to pay off debts, and Chapter 13, which creates a court-approved repayment plan. The goal is to give debtors a fresh start while ensuring fair treatment for creditors under the law.