Final answer:
The federal Bankruptcy Code provides bankruptcy protection to help those with debt problems, ensures stable money supply for economic stability, and promotes overall financial stability by improving transparency and protecting both taxpayers and consumers.
Step-by-step explanation:
The three main purposes of the federal Bankruptcy Code are:
- Bankruptcy Protection: To provide a legal process by which individuals or businesses can address their debt problems and protect them from further immediate obligations to creditors.
- To ensure a Stable Money Supply: By handling insolvency in an orderly manner, the Bankruptcy Code helps maintain confidence in and stability of the nation's financial system.
- Financial Stability: To promote the financial stability of the United States by improving accountability and transparency in the financial system, protecting American taxpayers from bailouts, and guarding consumers from abusive financial services practices.
These purposes are integral in upholding the economic structure and providing a safety net for times of financial distress while promoting fairness in the credit market.