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Bankruptcy is a legal proceeding involving a person or business that is unable to repay their outstanding debts. Bankruptcy allows individuals or businesses freedom from their debts, while simultaneously providing creditors an opportunity for repayment. Bankruptcy is handled in federal courts, and rules are outlined in the U.S. Bankruptcy Code. Bankruptcy can allow an individual a fresh start, but it will stay on one’s credit reports for a number of years and make it difficult to borrow in the future. In a 4-6 page paper, address the following:
What are the major types of bankruptcy?
Explain the basic purposes and procedures of each major type of bankruptcy?
Discuss what happens to a debtor's assets and liabilities during bankruptcy?
What debts are not dischargeable in bankruptcy?
What recommendation should be made to a creditor to protect itself from a debtor filing bankruptcy?
What are the consequences of filing bankruptcy?
Finally, give examples of notable companies that filed bankruptcy and discuss what happened to those companies? You may include examples from your own business context.
Make sure you have at least six (6) peer-reviewed sources
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