What is a Bankruptcy?
A bankruptcy is a legal process that allows a debtor to wipe away the debts that are owed. The debtor must be “insolvent” and choose a certain Chapter. Chapter 7 is for liquidating personal assets, Chapter 11 is for someone to “reorganize” their debts, and Chapter 13 is “restructuring” the debts so payments can be made. All forms of bankruptcy are designed to help the debtor to get back on their feet.