Bankruptcy

Bankruptcy is like going to the grown-up's timeout. Sometimes grown-ups can borrow too much money or not pay back what they borrowed on time. When that happens, they might have a hard time paying for the things they need, like food or a house.

So, grown-ups go to court and ask the judge for help. The judge calls this "filing for bankruptcy." If the judge thinks that the grown-up needs help, they will allow them to stop paying some or all of the money they owe.

But, bankruptcy isn't a magic word, and it comes with some consequences. The grown-up might have to give up some of their things, like their fancy car or their big house, to help pay back some of the money they owe. They might also have trouble borrowing money again in the future or even getting a job that requires them to handle money.

In the end, it's like a grown-up timeout. It may not be fun, but it helps people learn to be responsible with their money and get a fresh start.