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I am unable to pay my bills and my friends have suggested filing bankruptcy, What is Bankruptcy?

I am unable to pay my bills and my friends have suggested filing bankruptcy, What is Bankruptcy?

bankruptcyA. Bankruptcy is a legal proceeding in which an individual who cannot pay his or her bills can get a fresh financial start. The right to file for bankruptcy is provided by federal law, and all bankruptcy cases are handled in federal court. Filing bankruptcy immediately stops all of your creditors from seeking to collect debts from you, at least until your debts are sorted out according to the law.