Category: Debt Management
Bankruptcy refers to a legal process where individuals or businesses who are unable to repay their debts to creditors seek relief from the burden of debt. This process involves filing a petition in court, after which a trustee is appointed to oversee the case.
Bankruptcy can be a difficult and emotionally challenging process, as it often involves the loss of assets, financial security, and creditworthiness. Depending on the type of bankruptcy, individuals or businesses may be required to liquidate their assets to pay off their debts, or may be given the opportunity to reorganize their finances under court supervision.
Bankruptcy laws vary by country and jurisdiction, and the specific rules and procedures can be complex and difficult to navigate without legal assistance. It is important to consult with a qualified attorney or financial advisor before considering bankruptcy as a solution to overwhelming debt.