US Bankruptcy Code

The U.S. Bankruptcy Code is a set of federal laws that provides individuals and businesses a legal way to address overwhelming debt. It offers various bankruptcy options, primarily Chapter 7 and Chapter 13 for individuals. Chapter 7 allows for the liquidation of non-exempt assets to pay creditors, while Chapter 13 enables individuals to create a repayment plan to manage and reduce their debts over time. The Code is designed to help debtors get a fresh start while ensuring fair treatment of creditors. It involves court procedures and legal protections for both parties.