Bankruptcy

Bankruptcy is a legal process in which an individual or entity that is unable to repay its debts seeks relief from creditors and protection from legal actions to seize assets or enforce repayment. Bankruptcy proceedings may result in the liquidation of assets to satisfy debts (Chapter 7 bankruptcy) or the reorganization of debts and repayment plans (Chapter 11 bankruptcy). Bankruptcy laws vary by jurisdiction and provide a framework for resolving financial distress and facilitating a fresh start for debtors.