federalism in bankruptcy

Federalism in bankruptcy means that both the federal government and individual states have a role in bankruptcy law. When someone files for bankruptcy, federal courts primarily handle the process, creating uniform rules nationwide. However, states can set certain rules and laws that influence how bankruptcy interacts with state-specific rights, like property laws or creditors' claims. This division ensures that the federal system provides consistent procedures, while respecting states' interests and laws, maintaining a balance between national standards and state sovereignty.