Bankruptcy is a legal process that allows individuals and businesses to restructure or eliminate their debts when they are unable to pay them. It is often considered a last resort, but it can provide a fresh start and relief from financial burdens.

There are several types of bankruptcy, including Chapter 7, Chapter 11, and Chapter 13. Each type has different rules and eligibility criteria.

Bankruptcy can be filed when an individual or business is unable to pay their debts due to financial hardship, such as medical expenses, job loss, or other unexpected events.

The bankruptcy process typically involves filing a petition with the court, meeting eligibility criteria, and then attending a trustee meeting. After that, creditors are discharged of their claims, and the debtor is released from the obligations they incurred before filing for bankruptcy.