The primary function of bankruptcy is to provide individuals or businesses with a legal process to eliminate or repay their debts and get a fresh financial start. Bankruptcy can help debtors to. 1. Eliminate or reduce unsecured debts, such as credit card debt and medical bills. 2. Stop creditor collection actions, such as wage garnishment and foreclosure. 3. Reorganize secured debts, such as mortgages and car loans, to make them more manageable. 4. Protect assets from creditor seizure and liquidation. 5. Negotiate with creditors and develop a repayment plan that is affordable and sustainable.
6. Obtain relief from overwhelming financial pressure and achieve a fresh start.