The Bankruptcy Code

The Bankruptcy Code is a federal law in the United States that governs how individuals and businesses can seek relief from overwhelming debt. It provides a legal process for debtors to either reorganize their finances and create a repayment plan (Chapter 11 for businesses, Chapter 13 for individuals) or eliminate most debts altogether (Chapter 7). The goal is to give debtors a fresh start while ensuring fair treatment for creditors. The code outlines the rights and responsibilities of all parties involved in the bankruptcy process, aiming to balance the interests of debtors seeking relief and creditors wanting repayment.