A bankruptcy is a legal process that provides debt relief for individuals and businesses. It is a legal proceeding in which a person or business assets are liquidated to pay off creditors. A bankruptcy can be filed under different chapters of the US Bankruptcy Code, including Chapter 7, Chapter 11, and Chapter 13. Each chapter has different requirements and effects on the debtor. Individuals or businesses may file for bankruptcy to protect themselves from creditors, discharge debts, or reorganize their finances.