National Bankruptcy Act

The National Bankruptcy Act is a federal law in the United States that provides a legal framework for individuals and businesses to manage their debts when they cannot pay them. It outlines different chapters of bankruptcy, like Chapter 7 and Chapter 13, which offer options to either liquidate assets to pay creditors or create a repayment plan. The Act aims to help debtors restructure their finances, protect them from aggressive creditor actions, and ultimately, give them a fresh start while ensuring fair treatment for creditors.