US bankruptcy courts

U.S. bankruptcy courts are specialized federal courts that handle cases related to individuals or businesses seeking to reorganize or eliminate their debts due to financial distress. The process allows debtors to seek relief from overwhelming debt while providing a fair distribution to creditors. There are different types of bankruptcy filings, such as Chapter 7 (liquidation) and Chapter 13 (reorganization for individuals). The courts ensure that the legal rights of both debtors and creditors are respected, facilitating a structured resolution of financial difficulties while adhering to national bankruptcy laws.