What is bankruptcy? It’s a choice that may or may not be right for you. It gives you legally approved options for addressing your debt in an honest and sensible way.

The U.S. Constitution directly authorized bankruptcy. It gives Congress the “Power . . . to establish . . . uniform Laws on the subject of Bankruptcies throughout the United States.” ( See Article 1, Section 8, Clause 4.) Bankruptcies are governed by federal law, contained in the Bankruptcy Code (Title 11 of the United States Code). State laws also have a direct effect on bankruptcies, especially in providing for the property exemptions that its residents may use to protect their assets from creditors.

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