Bankruptcy Court
Bankruptcy court is a specialized court that deals with cases involving individuals or businesses that are unable to repay their debts. These courts oversee the legal process of bankruptcy, where debtors can seek relief from some or all of their debts through liquidation or reorganization. Bankruptcy courts handle cases under federal bankruptcy laws, ensuring that creditors are treated fairly and that debtors have an opportunity to get a fresh financial start.
Example
A company facing insurmountable debt may file for Chapter 11 bankruptcy, allowing it to reorganize its debts under the supervision of a bankruptcy court.
Key points
• Specialized courts that manage bankruptcy cases.
• Handle debt relief processes like liquidation and reorganization.
• Ensure fair treatment of creditors and help debtors reorganize or discharge their debts.
Quick Answers to Curious Questions
Get the latest insights & exclusive offers delivered straight to your inbox.
Start Your Journey
Put your knowledge into action by opening an XS trading account today
