Federal Bankruptcy Courts

Federal Bankruptcy Courts are specialized courts within the U.S. federal court system that handle bankruptcy cases. When individuals or businesses cannot pay their debts, they can file for bankruptcy to seek relief. The court helps manage this process, which may involve eliminating some debts or creating a repayment plan. There are different types of bankruptcy filings, like Chapter 7 for liquidation and Chapter 13 for reorganization. The court ensures that rules are followed and that creditors and debtors are treated fairly, providing a structured method for dealing with financial distress within the legal framework.