Filing for Bankruptcy

Filing for bankruptcy is a legal process that individuals or businesses use when they cannot pay their debts. It involves submitting a petition to a bankruptcy court, detailing assets, liabilities, income, and expenses. There are different types of bankruptcy, such as Chapter 7, which involves liquidating assets, and Chapter 13, which allows for a repayment plan. Once filed, an automatic stay stops creditors from collecting debts. The process provides a fresh financial start and can help reorganize debts but may also affect credit scores and asset ownership. Legal advice is often recommended to navigate the process effectively.