Bankruptcy cases cannot be filed in State Court. The 94 Federal Judicial districts handle bankruptcy matters, and in almost all districts, bankruptcy cases are filed in the Federal Bankruptcy Court.

Bankruptcy laws help people who can no longer pay their creditors and help them get a fresh start by liquidating their assets to pay their debts, or by creating a repayment plan.

Bankruptcy laws also protect troubled businesses and provide for orderly distributions to business creditors through reorganization or liquidation. These procedures ...

Debtors are strongly encouraged to find competent legal counsel. Even if you cannot afford to pay an attorney, you may be able to qualify for free or discounted legal services.
View the Legal Assistance video.

Debtors are usually able to discharge most or all of their debts. Once a debt is discharged, a creditor may not attempt to collect it from the debtor.
View the Discharge video.

In some cases, a debtor may be required to appear at hearings before a bankruptcy judge.
View the Court Hearing video.

A debtor must be honest and accurate in dealing with the court or face serious consequences, including being charged with a bankruptcy crime.
View the Bankruptcy Crime video.

Every debtor is required to appear at a creditors’ meeting conducted by a trustee who asks the debtor questions about the debtor’s financial condition and gives creditors the opportunity to do the same.

View the Creditors’ Meeting video.
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In order to file for bankruptcy, an individual must take a credit counseling course and accurately complete and file a number of documents.

View the Credit Counseling Video.
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The following debts and not discharged in a bankruptcy:
Child Support
Alimony
Most Student Loans
Some Federal Income Taxes
All Employer Withholding Tax

View the  Debts Not Discharged video.

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There are three main types of bankruptcy cases for individuals, the most common of which are chapter 7 and chapter 13.

View the Types of Bankruptcy video.
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An amendment to the federal Fair Credit Reporting Act requires each of the major nationwide consumer reporting companies to provide you with a free copy of your credit report, at your request, once every 12 months.

To order your free annual report from one or all the national consumer reporting companies, visit AnnualCreditReport.com, or call toll-free 877-322-8228.  Do not contact the three nationwide consumer reporting companies individually; they provide free annual credit reports only through AnnualCreditReport.com, 877-322-8228, and Annual Credit Report Request ...

Early detection of a potential identity theft can make a big difference. Keep an eye out for any suspicious activity by routinely monitoring:

Your financial statements. Monitor your financial accounts and billing statements regularly, looking closely for charges you did not make.

Your credit reports. Credit reports contain information about you, including what accounts you have and how you pay your bills. The law requires each of the major nationwide consumer reporting agencies to provide you with a free copy of your ...

Stay alert for the signs of identity theft, like:

•debts on your current accounts that you can’t explain.
•inaccurate information on your credit reports, including accounts and personal information, like your Social Security number, address(es), name or initials, and employers.
•not receiving bills or other mail. Follow up with creditors if your bills don’t arrive on time. A missing bill could mean someone has taken over your account and changed your billing address.
•receiving credit cards that you didn’t apply ...

Last month, 126,434 Americans filed for bankruptcy. This is the highest monthly total since changes were enacted five years ago. The increases are linked to unemployment, home foreclosures and tighter credit. This data comes from the American Bankruptcy Institute.
Recent bankruptcies include a couple of celebrities who have filed for Chapter 11 protection: actor Stephen Baldwin, who is fighting foreclosure, and former Philadelphia Phillies star Lenny Dykstra. Reported from USA Today.

In many situations, filing for bankruptcy is the best remedy for debt problems. In others, however, another course of action makes more sense. If your main concern is that creditors are harassing you, bankruptcy is not necessarily the best way to stop the abuse. You can get creditors off your back by taking advantage of federal and state collection laws that protect you from harassing conduct.
If you have income, or you have assets you can sell, you may be ...

Bankruptcy can be invasive as you will have to disclose all details of your finances to the court. People in your community could find out you have filed bankruptcy. In a Chapter 7 bankruptcy, you can have property repossessed or taken away. Under a Chapter 13 plan, you might spend several years having to ask permission to spend your own money.

If a friend or relative helped you get financing by cosigning a loan agreement, Chapter 13 bankruptcy will protect your cosigner, but under Chapter 7 they will be responsible for any debt you don’t pay.

In most states, you will not lose pensions, retirement accounts, or life insurance in bankruptcy. If you have a pension, a 401(k), an IRA, or life insurance, find out what’s protected in your state.