Bankruptcy is a federal court process designed to help consumers and businesses eliminate their debts or repay them under the protection of bankruptcy court. Bankruptcy is an option that often must be considered when an individual can not pay its debts as they mature. Bankruptcy is something I do not recommend any more than I would recommend divorce. Together with a divorce, bankruptcy is out of the top five life altering negative events that we can move forward with difficulty r illness, disability, and loss of a loved one. In its simplest form is a legally declared inability or failure reduced ability of an individual or organization to pay their creditors. Chapter 7 bankruptcy allows for emissions, or eliminate, bad debts to start an economic