The Bankruptcy Code (U.S.)

The U.S. Bankruptcy Code is a set of legal rules that allow individuals or businesses facing financial distress to reorganize or eliminate their debts. It provides structured processes, like Chapter 7 for liquidation and Chapter 13 for repayment plans, enabling debtors to resolve financial obligations while protecting them from creditors. The goal is to give honest debtors a fresh start while ensuring fair treatment of creditors. The code balances debtor relief with creditor rights, creating a legal framework to address insolvency efficiently and transparently.