Bankruptcy is a legal process that clears out your debts or creates a payment plan to creditors, allowing you to catch up.

Businesses, farmers, municipalities, and individuals can file for bankruptcy.

While wiping out your debts might sound appealing, there are downsides. Plus, some debts, like student loans, are notoriously difficult to get removed in bankruptcy. But in some cases, it might be the best option.

Let's dive into bankruptcy and see what it all means.