Federal Bankruptcy Code

The Federal Bankruptcy Code is a set of laws in the United States that outlines how individuals and businesses can manage their debts when they cannot repay them. It provides different chapters for filing bankruptcy, such as Chapter 7 for liquidation and Chapter 13 for reorganization, allowing for debt restructuring. The code aims to offer a fresh financial start while ensuring fair treatment for creditors. Essentially, it establishes the legal framework for dealing with bankruptcy proceedings, protecting both debtors and creditors’ rights in the process.