What Is Bankruptcy?
Bankruptcy is a way to get a fresh financial start (as an individual or business) if you can’t repay your debts. Typically, this requires filing a petition with a bankruptcy court. From there, a judge decides whether you must liquidate any of your assets or if the debt can be restructured to satisfy as much of your obligation as possible.
Key Takeaways
- Bankruptcy offers a legal path to debt relief, but that comes with lasting financial consequences, including credit damage and a potential loss of assets.
- The type of bankruptcy you qualify for determines whether your debts are either discharged or restructured and repaid over time.
- Before filing for bankruptcy, consider alternatives like negotiating with…
