What is the purpose of bankruptcy law?

Bankruptcy law is a set of civil laws that provide relief to individuals and businesses who are in financial distress. Bankruptcy law operates under the federal bankruptcy code, which is uniform throughout the United States. In Texas, bankruptcy law helps individuals and businesses manage their financial problems and develop a plan for repayment of debts. The main purpose of bankruptcy law is to provide protection to debtors from creditors and to help them get financially back on their feet. The law does this by granting debtors relief from all of their debts, or at least part of those debts, and allowing them to make payments over time. Additionally, the bankruptcy law gives creditors a chance to receive some compensation for the money owed. Bankruptcy also helps debtors start fresh. After a bankruptcy is filed, debtors no longer have to worry about lawsuits from creditors or the risk of having their wages garnished. Bankruptcy law provides debtors with the opportunity to reorganize their finances so they can become financially stable. Above all, bankruptcy law is designed to provide individuals and businesses with a chance to get out of debt and create a viable financial plan. The law is not designed to be punitive, but rather, to provide relief and give debtors a chance to get back on their feet.

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What is the purpose of bankruptcy law?

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