Bankruptcy Law is a legal framework that allows individuals or businesses unable to pay their debts to seek relief from some or all of their financial obligations. It provides a way to reorganize or eliminate debts, helping debtors regain financial stability. The process is governed by federal law in the United States, primarily under the U.S. Bankruptcy Code. There are different types of bankruptcy, such as Chapter 7 and Chapter 13, each serving different needs. Chapter 7 involves liquidating assets to pay creditors, while Chapter 13 allows individuals to create a repayment plan to settle debts over time.