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Bankruptcy is a legal process where individuals or entities who cannot repay debts to creditors seek relief from some or all of their debts.

Also known as liquidation bankruptcy, Chapter 7 allows debtors to eliminate most of their debts by liquidating assets to pay creditors.

Chapter 11, known as reorganization bankruptcy, permits businesses to restructure their debts and continue operating.

Chapter 13 bankruptcy allows individuals with regular income to develop a plan to repay all or part of their debts over time.

An automatic stay is an immediate injunction that halts actions by creditors, with certain exceptions, to collect debts from a bankruptcy petitioner.

A bankruptcy trustee is a person appointed by the court to manage the debtor's estate, oversee the bankruptcy process, and represent the interest of the creditors.

The Means Test is a method used to determine eligibility for Chapter 7 bankruptcy, which assesses an individual's income and expenses against the median income for their state.

A discharge of debts in bankruptcy releases the debtor from personal liability for certain specified types of debts, effectively wiping them out.

Bankruptcy fraud involves the intentional act of filing false information or claims in a bankruptcy case, or hiding assets to avoid having to use them to pay debts.

These are payments made to certain creditors shortly before filing for bankruptcy that may be recovered by the trustee for equal distribution among all creditors.

Secured debt is backed by collateral, whereas unsecured debt is not, affecting their priority in bankruptcy proceedings.