What is the legal process called when a patient's debt is eliminated by a court?

The legal process where a patient's debt is eliminated by a court is known as bankruptcy. This is a formal procedure governed by federal law, allowing individuals or entities that are unable to repay their debts to seek relief from some or all of their financial obligations. When a court grants bankruptcy relief, it can discharge certain debts, meaning the debtor is no longer legally required to pay them, providing a fresh financial start.

In this context, other terms such as debt relief and financial forgiveness may refer to general concepts of alleviating financial burdens but do not represent the specific legal process recognized under U.S. law that bankruptcy does. Credit rehabilitation typically relates to strategies to improve credit scores and does not imply the elimination of debt through a court decision.