Bankruptcy, which is outlined by laws in the United States Bankruptcy Code, allows a debtor, who has debt obligations which have exceeded their ability for repayment, to terminate contractual debt obligations with their creditors, potentially develop a plan of debt payment reorganization and avoid litigation. The goal is to allow the debtor a fresh financial start while distributing the debtor's remaining assets to creditors as equitability as possible. Bankruptcy can be a voluntary or involuntary process forced on the debtor by their creditors.
Parties of interest can include: