What is the purpose of bankruptcy law?

The purpose of bankruptcy law is to provide debtors with a way to reorganize or discharge their debts when they are unable to pay them back. Bankruptcy law acts as a safety net for individuals, businesses, or other entities when they become overwhelmed by debts they cannot pay. In California, bankruptcy law usually falls under the purview of the United States Bankruptcy Code (Title 11 of the Code of Federal Regulations). This code provides debtors with certain protections and procedures for filing for bankruptcy. Generally, bankruptcy law allows an individual or business to liquidate non-exempt assets, such as property and assets, to pay off debts to creditors. Bankruptcy law also enables debtors to reorganize their debts and agree to a repayment plan with creditors. This will allow the debtor to pay back a portion of the debt over a period of time. Finally, bankruptcy law can provide debtors with an opportunity to have certain debts discharged, which means the debtor does not have to pay them back. Overall, the purpose of bankruptcy law is to provide debtors with the opportunity to lower or discharge their debts when they become overwhelmed with debt. It provides individuals, businesses, or other entities with a way to reorganize their debt, liquidate assets, or have certain debts discharged in order to move forward with their finances.

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What is the purpose of bankruptcy law?

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