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Bankruptcy

What is it? Is a legal avenue debtors use to be legally released from their debts. When a person can no longer pay his obligations, he may opt to file for personal or business bankruptcy. There are several chapters of bankruptcy but the most commonly used Chapter 7 (total liquidation of assets), Chapter 11 (Business reorganization), Chapter 12 (Farm debt) and Chapter 13 (Repayment Plan).

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We hope you now understand the meaning of Bankruptcy. If you need any more information on this term, please don't hesitate to contact us.