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Bankruptcy is a legal proceeding that helps individuals and businesses shed debts they can’t pay while offering creditors (partial) repayment. During bankruptcy proceedings, a court evaluates the debtor’s assets to determine what can be liquidated to pay the outstanding debt. You can file different types of bankruptcy, named after their chapter in the U.S. Bankruptcy Code, based on your situation. (For instance, businesses may file Chapter 11, while individuals file Chapter 7 or 13.) 

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