Bankruptcy is a federal court proceeding in which debtors (people who owe money) acting in good faith can get rid of debt or work out a plan to repay all or part of their debt so that they can get a fresh start.
When you file your bankruptcy petition, an “automatic stay” goes into effect that stops your creditors from taking efforts to collect, at least temporarily, and gives you breathing room. When you follow the requirements and complete your case, you can receive a “discharge” of all or part of your debt, but certain debts, such as child support, are not dischargeable. Debt that is discharged in bankruptcy is permanently erased and creditors cannot try to collect it.
