Bankruptcy is a legal tool to help you manage overwhelming debt. Common types include Chapter 7 and Chapter 13. Learn whether bankruptcy is right for you.

Definition of Bankruptcy. Bankruptcy is a legal status or process in which individuals, businesses, or organizations declare themselves unable to repay their outstanding debts to creditors.

Learn what bankruptcy is, the different types, and how it affects your finances. Find out the steps involved in filing for Chapter 11, Chapter 13, and Chapter 7 bankruptcy.

Bankruptcy: Definition & When To File. By Nicholas Rossolillo – Updated Apr 17, 2025 at 12:22AM Key Points. Bankruptcy is a legal process to ...