Bankruptcy: Definition, Working, And Importance

A bankruptcy is a situation when an individual, a group, or a business thinks that they will not be able to pay for their debt(s) anymore.

There are different qualifying features for different types of bankruptcies. The type of bankruptcy that you file depends on your current financial status and the type of loan you have taken.

The US Bankruptcy Court controls the bankruptcy system in the United States. These courts are subunits of the US Federal Court.