Bankruptcy is a legal proceeding involving a person or business that is unable to repay outstanding debts. Through bankruptcy, the debtor may seek relief from some or all debts.
Chapter 7 bankruptcy involves the liquidation of a debtor's non-exempt assets to pay off creditors in exchange for the discharge of most debts.
Discharge in Bankruptcy refers to the release of a bankrupt party from the obligation to repay debts that were, or might have been, proved in a bankruptcy proceeding.
