What is bankruptcy and will it wipe out all
of my debts? Bankruptcy is the legal process in which a
judge and court trustee examine a person or business, assets and liabilities who are insolvent
and decide whether to discharge their debts, which makes them no longer legally required
to pay them. There are certain debts that might not be
discharged in bankruptcy, such as tax liens, student loans, back child support, and debts
obtained through fraud.