Bankruptcy, Glossary and Terms, Attorney's office, Personal Lawyer
Attorney's office, Law US, Rate, Review, Condition, Defense, Assurance
A legal proceeding that relieves you of the responsibility of paying your debts or provides you with protection while attempting to repay your debts. There are two types of bankruptcies - Chapter 7 liquidation, in which your debts are wiped out (discharged) and Chapter 13 reorganization, in which you provide the court with a plan for how you intend to repay your debts. Reorganization bankruptcy for consumers with an extraordinary amount of debt and for businesses is called Chapter 11.