Federal Bankruptcy Laws

Federal bankruptcy laws provide legal processes that help individuals or businesses who cannot pay their debts, offering a way to resolve their financial obligations fairly. These laws allow debtors to either eliminate certain debts (discharge) or create a manageable payment plan. Bankruptcy is supervised by courts to ensure fairness among creditors and to give the debtor a fresh start. Different types of bankruptcy, like Chapter 7 or Chapter 13, serve different needs, but all aim to balance debt relief with responsibility to creditors within a structured legal framework.