Bankruptcy is a legal process for individuals and businesses unable to repay their outstanding debts. This complex area of law offers a structured path to debt...
Bankruptcy is a legal procedure for individuals or businesses who cannot repay their debts. It allows them to resolve debt through liquidation of assets or a court-ordered repayment plan, aiming for a financial fresh start.
For individuals, the most common types are Chapter 7 (liquidation) and Chapter 13 (reorganization with a repayment plan). Businesses typically file Chapter 7 or Chapter 11 (reorganization).
Filing for bankruptcy significantly damages your credit score, remaining on your credit report for 7-10 years. While detrimental initially, it allows you to begin rebuilding credit after debts are discharged.
No, not all debts are dischargeable. Common non-dischargeable debts include most student loans, child support, alimony, certain taxes, and debts incurred through fraud.