Bankruptcy law encompasses a structured legal process designed to assist individuals and businesses facing overwhelming debt. It offers a formal mechanism to manage financial distress, providing options for restructuring debts or seeking a fresh start. This area of law includes various chapters or types of bankruptcy, each tailored to specific situations, such as Chapter 7 for liquidation or Chapter 13 for reorganization.
It involves a comprehensive legal evaluation of assets, debts, income, and expenses, aiming to provide a fair and organized resolution that benefits both debtors and creditors. Bankruptcy attorneys play a crucial role in guiding individuals or companies through the complex legal procedures, offering advice on the best course of action and representing their clients’ interests within the bankruptcy process.