Bankruptcy is a legal process that helps people who can’t pay their debts get a fresh start by liquidating their assets to repay their creditors.
The process begins with a petition filed by the debtor (also called the ” debtor in possession”), which is followed by a meeting of creditors, and finally a discharge of the debtor’s obligations.
During the bankruptcy process, the debtor’s assets are protected from creditors by the automatic stay, which is an order from the court that prevents creditors from collecting on their debts.
After the bankruptcy process is complete, the debtor is discharged from all of his or her obligations, and any remaining debt is forgiven.
If you’re considering filing for bankruptcy, it’s important to understand how the process works and what your options are.