What is the U.S. Bankruptcy Code?

The U.S. Bankruptcy Code is a set of federal laws that provide people and businesses with a way to seek relief from their financial obligations if they are unable to pay them. It is designed to give people and businesses a fresh start by allowing them to reorganize their finances and debts and usually involves restructuring their payments and reducing or eliminating some of their debt. In the state of Delaware, the U.S. Bankruptcy Code is handled through the U.S. Bankruptcy Court, which is a federal court dedicated to handling bankruptcy cases. The U.S. Bankruptcy Code is a complex set of laws and is broken down into chapters. Some of the most common types of bankruptcy are Chapter 7, which focuses on liquidation of assets to pay off debts; Chapter 11, which focuses on reorganization of debts; and Chapter 13, which involves developing a payment plan to pay back creditors. Each type of bankruptcy has different qualifications, so it is important to talk to a legal expert to find out which one is right for you.

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What is the U.S. Bankruptcy Code?

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