Federal Bankruptcy Act

The Federal Bankruptcy Act is a law that provides a legal process for individuals or businesses unable to pay their debts. It allows them to either reorganize their finances (Chapter 11 or 13) or have their debts forgiven (Chapter 7). The act aims to give debtors a fresh start while ensuring creditors are treated fairly. It establishes procedures and rules for filing bankruptcy, overseeing asset distribution, and resolving disputes. Overall, it serves as a structured method to manage financial insolvency within the framework of federal law, balancing debtor relief with creditor rights.