Individual bankruptcy

Individual bankruptcy is a legal process that allows a person who cannot pay their debts to seek relief from some or all of those debts. It typically involves a formal proceeding in which the individual's financial situation is evaluated by a court. Depending on the type of bankruptcy filed (usually Chapter 7 or Chapter 13), the individual may either discharge certain debts or create a repayment plan to manage them over time. The goal is to provide a fresh start financially while ensuring fair treatment of creditors. It can impact the individual's credit score and financial future.