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What Is Bankruptcy?
Bankruptcy is a legal process
designed to help individuals and businesses eliminate
their debts with the protection of Federal Law.
Bankruptcies are either described as “liquidation”
(Chapter 7) or “reorganization (Chapter 11 and 13).
Liquidation is where the bankruptcy filer asks the court
to wipe out or “discharge” certain debts. In a
reorganization under Chapters 11 and 13, a plan is filed
with the court that proposes to pay certain debts over
time. Most of the debts that remain are discharged once
the bankruptcy filer completes the bankruptcy plan.
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