Which of the following best describes a debtor under bankruptcy law?

A debtor under bankruptcy law is best described as an individual seeking protection from creditors to gain a fresh start. This definition captures the primary purpose of bankruptcy, which is to provide relief and a clean slate for individuals overwhelmed by debt. When someone files for bankruptcy, they do so with the intention of reorganizing their finances or discharging debts, thereby allowing them to regain control over their financial situation and start anew.

This definition emphasizes the protective aspect of bankruptcy, highlighting that it is a legal process designed specifically to assist those who find themselves unable to meet their financial obligations. The process involves court proceedings and involves various options, such as Chapter 7 or Chapter 13 bankruptcy, aimed at addressing the debtor's unique circumstances.

In contrast, while individuals who have received personal loans may find themselves in debt situations, not all personal borrowers fall under the legal definition of a debtor in need of bankruptcy protection. Similarly, a victim of credit fraud may face financial challenges but does not necessarily seek bankruptcy protection. Lastly, negotiating a settlement of debts involves discussions between the debtor and creditors outside of the formal legal framework of bankruptcy, and it does not equate to the act of filing for bankruptcy itself. Thus, option B encapsulates the essence of what it means to be a debtor