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Bankruptcy is a legal status for individuals or businesses that cannot repay their debts. It offers a fresh start by restructuring debts or liquidating assets, providing relief from overwhelming financial burdens and protecting against creditors.
The bankruptcy process involves several steps, including filing a petition, attending a creditors' meeting, and completing credit counseling
Chapter 7 bankruptcy allows individuals to eliminate most unsecured debts, such as credit cards and medical bills
Chapter 13 bankruptcy is designed for individuals with a regular income who wish to keep their assets while repaying debts over three to five years
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