What Is Bankruptcy?

What is Bankruptcy?

Bankruptcy is a legal proceeding in which a person who can not pay his or her bills can get a fresh financial start. The right to file for bankruptcy is provided by federal law, and all bankruptcy cases are handled in federal court. Filing bankruptcy immediately stops all of your creditors from seeking to collect debts from you, at least until your debts are sorted out according to the law.

From the National Consumer Law Center‘s Handout Answers to Common Bankruptcy Questions.
More Bankruptcy FAQ

Remember: The law often changes. Each case is different. This post is meant to give you general information and not to give you specific legal advice.

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