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bankruptcy

(BANK-rup-see)

The situation that occurs when a person or business is not able to pay back debts. Filing for bankruptcy is a legal process that is handled by a U.S. federal court. This process can help people get rid of their debt or reduce their debt through a repayment plan. Certain events, such as job loss, divorce, a long illness, or hospitalization, can affect a person’s ability to pay bills and lead to debt and bankruptcy. Filing for bankruptcy helps people get a fresh start financially, but it also affects their ability to borrow money or have credit in the future.

bankruptcy

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