United States Bankruptcy Court

The United States Bankruptcy Court is a federal court that handles cases involving individuals or businesses unable to repay their debts. It provides a legal process for debt relief under various chapters of the Bankruptcy Code, such as Chapter 7 (liquidation) and Chapter 13 (reorganization). The court evaluates the debtor's financial situation, helps to discharge certain debts, and oversees repayment plans. Its goal is to give debtors a fresh start while ensuring fair treatment of creditors. Each state has its own bankruptcy court, operating under federal law and guidelines.