There are many ways to answer this question. Here are three descriptions of bankruptcy:
1. A summary of bankruptcy
2. The typical steps of a Chapter 7 bankruptcy
3. The three main types of bankruptcy
Bankruptcy is the legal process that gives individuals and businesses protection and the ability to restructure debts. When you do not have the ability to handle all your obligations or are facing forced collection action, bankruptcy affords you the protection you may need to retain your assets and reorganize your finances.