Bankruptcy Workshop

Bankruptcy: A legal proceeding to deal with the liabilities of an insolvent debtor (individual or business). Its purpose is to distribute the bankrupt's assets equitably among the creditors and, in most cases, to free the bankrupt from further liability. Bankruptcy may be instituted by the debtor (voluntary) or by the creditors (involuntary). In the U.S., bankruptcy is governed by federal laws

U.S. Bankruptcy Code