Bankruptcy Court System

The Bankruptcy Court System is a specialized part of the federal judiciary that handles cases related to individuals and businesses unable to pay their debts. When someone files for bankruptcy, they seek legal relief from debts, and the court oversees this process. It can help reorganize debts (Chapter 11), liquidate assets to pay creditors (Chapter 7), or set up a repayment plan (Chapter 13). The court ensures fair treatment of creditors and debtors, providing a structured way to resolve financial distress and start anew. It plays a crucial role in the broader economy by allowing for orderly financial recovery.