What is bankruptcy?

Bankruptcy is a legal process for a person who cannot pay their bills. Bankruptsy can give you a fresh financial start. The right to file for bankruptcy is in federal law, and bankruptcy cases are handled in federal court. Filing bankruptcy immediately stops all of your creditors from trying to collect what you owe. They have to wait until your debts are sorted out according to the law.

Should I file for bankruptcy?

Bankruptcy is usually a last resort option. Only file for bankruptcy after careful consideration of your options. Learn more to decide if it is the best way to fix your financial problems. If you still have questions, speak with a bankruptcy lawyer.

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Last Reviewed: May 15, 2023