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Credit and Bankruptcy Law

Bankruptcy

What is bankruptcy?

Bankruptcy is a process in which an individual or company files a court action declaring that he or it is financially unable to pay off debts. During bankruptcy, a court liquidates a person or company’s assets, discharges debt, and repays a portion back to creditors (if there are any available funds). Bankruptcy also provides for an orderly process for reorganizing businesses and distributing payments to creditors. Bankruptcy has its own set of federal courts, as nearly every one of the 94 federal judicial districts in the country has its own bankruptcy court.



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