Bankruptcy Proceedings Legal Meaning and Definition

Here is a simplified definition of the legal term Bankruptcy Proceedings.

Bankruptcy Proceedings (noun): The legal process in which a court evaluates and resolves a person or business's request to be declared as bankrupt. This usually involves examining the restructuring, refinancing, or rescheduling of the person or entity's debts. It is often a step taken when the individual or business entity cannot repay their outstanding debts.