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When a person or business can't pay their debts and seeks legal help.

Business Glossary provided by
Bankruptcy is a legal proceeding carried out to allow individuals or businesses that are unable to repay their outstanding debts to resolve their financial obligations. The bankruptcy process entails the evaluation of the debtor's assets and liabilities and then providing a mechanism to use those assets to repay a portion of the debt. Bankruptcy can provide a fresh start for financially distressed entities, but it may involve the liquidation of assets or the creation of a repayment plan.
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