Bankruptcy is a court-supervised legal process designed to help individuals or businesses that are unable to repay their debts. It provides a way to either eliminate certain obligations or reorganize finances, offering a path toward a fresh financial start. Depending on the situation, this may involve selling off assets to repay creditors or establishing a manageable repayment plan over time. However, filing for bankruptcy immediately triggers a legal protection that stops most collection activities called Automatic Stay. Successful cases end in a "discharge," meaning you are no longer legally required to pay the forgiven debts. Creditors must cease actions like calling, filing lawsuits, garnishing wages, or moving forward with foreclosure.