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- Bankruptcy is a legal process by which consumers and business can eliminate or repay some or all of their debts12. Bankruptcy is handled in federal courts, and follows the rules of the U.S. Bankruptcy Code and other procedural laws312. Bankruptcy assists creditors in dealing with an insolvent debtor, and allows individuals and businesses a chance to start fresh after a financial collapse34. Bankruptcy can also preserve a business's assets by allowing distressed companies to reorganize rather than liquidate4.Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Bankruptcy is a legal process by which consumers and business can eliminate or repay some or all of their debts. The Federal Rules of Bankruptcy Procedure, 11 U.S.C Bankruptcy Code, and Local Rules of Bankruptcy Practice govern bankruptcy procedures. Federal Courts have exclusive jurisdiction over bankruptcy cases.www.utb.uscourts.gov/what-bankruptcy-and-how-d…Bankruptcy is a legal proceeding carried out to free individuals or businesses from their debts. Creditors still have an opportunity for repayment with the bankruptcy process. Bankruptcy is handled in federal courts, and rules are outlined in the U.S. Bankruptcy Code.www.investopedia.com/terms/b/bankruptcy.aspBankruptcy is a proceeding where a judge and court-appointed trustee examine the assets and liabilities of individuals, partnerships and businesses who’ve concluded they can’t pay their debts. Bankruptcy laws, written to provide a second chance after a financial collapse, require individuals and businesses to follow a number of procedural steps.www.debt.org/bankruptcy/How do bankruptcies work? The purpose of bankruptcy is two-fold. First, it assists creditors in dealing with an insolvent debtor. Second, it allows individuals and businesses a chance to start fresh after a financial downfall. Bankruptcy also can preserve a business's assets by allowing distressed companies to reorganize rather than liquidate.www.businessinsider.com/personal-finance/what-d…
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