bankruptcy laws
Debt relief statutes
Bankruptcy laws are legal statutes governing how individuals and businesses discharge or restructure debts they cannot pay.
In the United States, federal bankruptcy code provides several chapters—Chapter 7 for liquidation, Chapter 11 for business reorganization, Chapter 13 for individual repayment plans.
These laws balance creditor rights against giving debtors a fresh start: She filed under the bankruptcy laws to stop foreclosure.
- debtorOne who owes
- insolvencyInability to pay debts
- debt reliefReduction of obligations owed
- creditorOne owed money
- secured debtLoan backed by assets
Chapter 7 · means test · Chapter 11 · reorganization · collateral · underwater mortgage · guarantors · debt restructuring · payment plan · trustee · cramdown · fiduciary duty · filing · garnishment · foreclosure · repossession · wage garnishment · Chapter 13
- lawsstatute, ordinance, acts, statutes, federal statute
- Congress powersspending power, declare war, impeachment, lawmaking, appropriations
- federal powersdeclare war, interstate commerce, national defense, federal taxes, war powers