filed bankruptcy

Filing bankruptcy is a legal process that helps individuals or businesses manage overwhelming debt. It allows them to either eliminate debts or create a manageable repayment plan under court supervision. The goal is to provide a fresh financial start while balancing the rights of creditors. Bankruptcy is a formal process that involves submitting financial details to a court, which then determines how to handle the debts based on specific rules and chapters of bankruptcy law. It’s often used when debts exceed the debtor’s ability to pay, offering relief and protection from collection actions.