Frequently Asked Questions 1.
Bankruptcy law is federal law.
The United States Constitution grants the federal government the exclusive right to make bankruptcy laws. Pursuant to this authority, the federal government created the bankruptcy code. The three most common forms of bankruptcy are chapter 7, chapter 13, and chapter 11. Often people file bankruptcy before they are seriously delinquent on their monthly debts. If you can barely make the minimum payments required on your credit cards, or if it appears that you will not be able to make payments as they come due, it may be better for you to file bankruptcy rather than let your situation deteriorate.