What is Bankruptcy?
Bankruptcy meaning The formal condition of an insolvent person being declared bankrupt under law. The legal effect is to divert most of the debtor’s assets and debts to the administration of a third person, sometimes called a “trustee in bankruptcy”, from which outstanding debts are paid pro rata. Chapter 7- A section of the bankruptcy code under which a debtor’s property is liquidated to pay his or her creditors and a debtor can obtain a discharge of personal debts through the bankruptcy court. Spousal and child support obligations cannot be discharged in Chapter 7 proceedings. Chapter 11- A section of the bankruptcy code under which the