As with any article dealing with law, it is provided to give general information. You should not rely on the article as a basis for any legal action, but instead contact a lawyer. This is a legal proceeding which is filed in the Federal Bankruptcy Court.
Every individual has a right to file bankruptcy pursuant to the federal bankruptcy law.
This law was designed primarily to cure serious problems with debts, and give the debtor a fresh start. The most common type of bankruptcy is a Chapter 7. The individual who files for a Chapter 7 bankruptcy is known as the Debtor. In Chapter 7 bankruptcy the debtors non-exempt property is sold at a Court Administered sale. Proceeds from this sale will then be distributed to the Debtor's Creditors.