Simply put bankruptcy definition is when an individual or business seeks the help of the law courts to help him pay of his debts. It’s not something you like to think about, but you may find yourself considering bankruptcy at some point in your life.

Bankruptcy is a federal court process that helps individuals and businesses repay their debts under the protection of the bankruptcy court (Chapter 13 Bankruptcy) or wipe their debts out altogether (Chapter 7 Bankruptcy). When you file for bankruptcy, an automatic stay goes into effect which prohibits your creditors from taking action to collect the debt without the approval of the court.

There are two basic types of bankruptcies: liquidation or reorganization. In the US, liquidation is known as Chapter 7 Bankruptcy, which refers to the chapter of the bankruptcy law that allows your assets to be sold off (liquidated) to pay creditors. Reorganization is most commonly known as Chapter 13 Bankruptcy.

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Personal Bankruptcy | Bankruptcy Forms

hey i would like to add Bankruptcy is a generalized term for a federal court procedure that helps consumers and businesses get rid of their debts and repay their creditors. If you can prove that you are entitled to it, the bankruptcy court will protect you during your bankruptcy proceeding. In general, bankruptcies can be categorized into two types -- "liquidations" and "reorganizations."
hope u would agree with it..
thanks.

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personal financial planning
frugal living