What is a Bankruptcy?

A bankruptcy is the inability of an individual or business to meet the obligations it has to its creditors.  When an individual gets in a situation where it can’t meet its debt obligations it is usually because they have racked up a lot of credit card debit along with a home and car loan.  When a business gets in this situation it is usually because the business idea has failed.  Businesses get in situations like this because of  bad business ideas, poor business management, or a stalling economy.  When someone gets in a situation like this they often consider filing a chapter bankruptcy.