A bankruptcy is a legal process that allows individuals or businesses to eliminate or repay their debts under the protection of the bankruptcy court. It typically occurs when a person or company cannot meet their financial obligations, leading them to seek relief from creditors. There are different types of bankruptcies, such as Chapter 7 and Chapter 13 in the United States, each with its own rules and procedures. During bankruptcy, the debtor's assets may be liquidated to pay off creditors, or a repayment plan may be established. The process aims to provide a fresh start for the debtor while ensuring fair treatment for creditors. Once completed, bankruptcy can help individuals or businesses regain financial stability.