What is bankruptcy?

Bankruptcy is a federal court process. Through this process, debtors are allowed to eliminate or reorganize debt. Bankruptcy protection is supervised by the bankruptcy court. The purpose of a bankruptcy is to provide legal protection for persons who struggle with debt so overwhelming they are unable to repay their debt obligations to creditors.

Debt stress is caused by debt so overwhelming, that a person may need bankruptcy protection in order to start a new, debt-free chapter in their life.