Bankruptcy Defined

Legal Helpers Tip: Bankruptcy has been recorded in history since ancient Hebrew texts, again during the preeminence of Greece, and throughout the world domination of the Romans. Technically, bankruptcy is a federal statutory law contained in Title 11 of the United States Code.  By definition, bankruptcy is a “federal court process designed to help consumers and businesses eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcies can generally be described as liquidation or reorganization." The law is intended to give people, who are in a debt problem they cannot solve with their current income, a “fresh start” in their financial lives.