Consumer Bankruptcy Law

Consumer bankruptcy law is a legal process that allows individuals who cannot repay their debts to seek relief from some or all of their obligations. The two primary types of consumer bankruptcy in the U.S. are Chapter 7, which liquidates non-exempt assets to pay creditors, and Chapter 13, which enables individuals to keep their property while repaying debts over time through a court-approved plan. This law aims to provide a fresh financial start while balancing the rights of creditors and helping consumers manage their financial burdens. It involves filing a petition in bankruptcy court and adhering to legal requirements.