U.S. Bankruptcy Code

The U.S. Bankruptcy Code is a federal statute that governs bankruptcy proceedings in the United States. This set of laws, found in Title 11 of the United States Code, offers a legal framework for individuals and businesses to either eliminate or repay their debt under the protection of the bankruptcy court. Different chapters within the code provide various forms of relief; for example, Chapter 7 deals with liquidation, while Chapters 11 and 13 provide for reorganization of businesses and individuals, respectively. Understanding the U.S. Bankruptcy Code is essential for anyone navigating financial difficulties, as it outlines both the rights and responsibilities of debtors and creditors alike.