The Bankruptcy Code is a set of federal laws in the United States that governs the process of bankruptcy. It provides guidelines for individuals and businesses to either eliminate or repay their debts under the protection of the federal court system. The code aims to give debtors a fresh start while ensuring fair treatment for creditors. There are several chapters within the Bankruptcy Code, including Chapter 7, which involves liquidation of assets, and Chapter 13, which allows for debt reorganization and repayment plans. Each chapter has specific eligibility requirements and procedures to follow, helping individuals and businesses navigate financial difficulties.