Quick Definition

Bankruptcy is a legal process through which individuals or businesses unable to meet their financial obligations can seek relief from some or all of their debts.

Examples

• 1An individual filing for Chapter 7 bankruptcy to liquidate assets and clear unsecured debts.
• 2A large corporation filing for Chapter 11 bankruptcy to reorganize its debt structure and continue operations.
• 3A small business owner filing for Chapter 13 bankruptcy to create a repayment plan for debts over several years.

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