Corporate bankruptcy is a legal process that occurs when a company cannot pay its debts. This situation often leads to the company seeking protection under bankruptcy laws, allowing it to reorganize its finances or liquidate its assets. The goal is to either pay off creditors or to restructure the business to become profitable again. There are different types of corporate bankruptcy, such as Chapter 11 and Chapter 7 in the United States. Chapter 11 allows a company to continue operating while it develops a plan to repay its debts, while Chapter 7 involves selling off assets to pay creditors and typically results in the company's closure.