Bankruptcy is a Federal court Legal Proceeding through which an individual can make a fresh financial start as an individual is helpless in providing the debt at the due date to creditors and cannot pay up the bill as well therefore he goes bankrupt but a right to file for bankruptcy vests in the hands of federal law only and no other super law can file such a case or condition of an individual. The various cases of bankruptcy according to their weight and nature of the condition tendency is filed and handled in the federal court itself. It’s the federal court as supreme authority that defines the course of action to be imposed towards a particular case of bankruptcy nature as to whether the case is lenient or is extremely complicated to be handled with care and with legal proceedings based upon the output of such cause in days or months time. The moment you file bankruptcy it immediately seizes up the creditors involvement to seek out collection of your debts at least till your debts are sorted out according to the federal law hearing next time. The elimination processing of the debts by an individual or repayment of the amount thereupon is what protected as vested asset in the hands of the federal court Law. It is also defined as "Re-organizing" or "Liquidating of the debt" by the federal court (Law).

In the case of Liquidation process if the property earned by an individual isn’t being exempt under state law. It will be sold or taken by federal court to pay back certain remaining of the person’s debt amount whereas in the case of re-organization processing the consumer who has bought property for his own indigenous purposes can be provided with a liberty by the federal authority to keep the entire asset with himself but with a condition that the consumer has to make monthly payments over three to five years to repay all or some of the debt and with no additional leniency that the consumer could drop off any single month of payment out of overall annual repayment towards court or else the federal court might take certain stringent actions that are restrictive by nature for any further transaction of the repayment of the amount and the person can be jailed as well. There’re numerous exceptions and sophisticated rules and regulations attached for thorough analyses of the nature of different bankruptcy solutions and all these falls under the additional parlance of guidelines to be laid upon by the federal court in order to ensure equal and fare justice trial so that the trial should vest in the hand of the fair and square troubled consumer and no innocent individual be felt injustice by the court lord order because in certain registered cases of bankruptcy cases full of suicidal attempts came into lime light where injustice was done and hearing was done inappropriately with wrong verdict. If the filling is done fair and square there’s no chance that the affected one won’t survive the court case no matter how long be it continued. Till today a ‘last resort’ is always experienced by the consumer who was unable to pay up the bills to the court or to the creditors. The sigh of relief for the distribution of the assets of the consumer makes him/her free enough to take further decisive actions and could also search upon solutions to mend the ways which might be going absolutely against his wish and will.

The decision to file for bankruptcy is a serious step. You'll have to give up everything that isn't a necessity, and use the money to pay off your creditors. Creditors are given priority by a court. Once your assets are distributed, you will be free from most of your obligations, even if your debts are not all paid off. Stop foreclosure on your house or mobile home and allow you an opportunity to catch up on missed payments. It however, does not eliminate mortgages or other liens on the property without any payment made thereupon. It also stops debt harassment for collection purposes and wage garnishment for any such collection by the debtor for debt.