Bankruptcy is a set of federal laws and rules that can help individuals and businesses who owe more debt than they can pay. In bankruptcy, the person or business that owes money is called the debtor. Bankruptcy permits the debtor to work out a plan to repay some or all of the debt, to liquidate assets, or to have some of the debt forgiven ("discharged") in an effort to obtain a "fresh start." The bankruptcy laws give the debtor protection and benefits not available outside of bankruptcy, such as requiring that creditors stop all collection efforts while the debtor is in bankruptcy. In bankruptcy, a debtor must make full disclosure of all assets, liabilities, and other financial information, and must either:

• surrender non-exempt (unprotected) property for liquidation and distribution to creditors, or
• provide a "plan" that pays creditors at least as much as they would receive if the assets were liquidated.