What is Bankruptcy?

Bankruptcy laws help people who can no loger pay their creditors get a fresh start by liquidating their assets to pay their debts, or by creating a repayment plan. Bankruptcy laws also protect troubled businesses and provide for orderly distributions to business creditors through reorganization or liquidation. These procedures are covered under Title 11 of the United States Code (the Bankruptcy Code). The vast majority of these cases are filed under the three main chapters of the Bankruptcy Code. These are Chapter 7, Chapter 11, and Chapter 13.

In 2005, the Bankruptcy Code was amended to require that most individual debtors complete a special briefing from an approved credit counseling agency before filing a bankruptcy case.

Learn more about Bankrupcy:

Chapter 7

Chapter 13