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What is Bankruptcy?

As defined the United States Bankruptcy Code, bankruptcy is legal procedure for dealing with debt problems of individuals and businesses; specifically, a case filed under one of the chapters of title 11 of the United States Code.  Essentially, bankruptcy is a legal process that allows individuals to achieve a fresh start either by reorganizing debts or by completely discharging the debt without repayment or reorganization.  Bankruptcy is procedure under federal law and provides protection to the debtor from creditors.

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