Bankruptcy is a federal court process. It can address overwhelming debt, but is not a guaranteed way to keep every asset or erase every obligation. Chapter 7 can involve liquidation of nonexempt assets; Chapter 13 generally involves a court-supervised repayment plan for eligible individuals with regular income. A discharge concerns personal liability for covered debt; a lien can survive unless separately addressed. Filing can create an automatic stay, but exceptions, prior filings, and court orders can limit it. US Courts — Bankruptcy Basics, US Courts — Chapter 7 Basics, US Courts — Chapter 13 Basics, US Courts — Discharge in Bankruptcy.
Before filing: Get advice about assets, exemptions, residence history, secured debts, transfers, recent payments, prior cases, taxes, support, and lawsuits. Approved credit counseling generally comes before filing; debtor education is a separate postfiling requirement, subject to limited exceptions. Means-test figures depend on the filing date and household facts; use the current DOJ tables, not a fixed dollar figure in an old article. DOJ — Credit Counseling and Debtor Education, US Courts — Counseling and Education Courses, DOJ — Means Testing.
Local courts: NJ has the US Bankruptcy Court for the District of New Jersey. NY has Northern, Southern, Eastern, and Western districts; use the federal court directory to identify the proper district and division. DC has the US Bankruptcy Court for the District of Columbia. County, residence, venue, local rules, and residence history matter. Do not choose a court merely because it has convenient online forms. NJ Bankruptcy Court — Chapter 7 Debtor Assistance, Eastern District of NY Bankruptcy Court — Filing Pro Se, DC Bankruptcy Court — General Filing Requirements, US Courts — Court Website Links.
Debt-collection rights are a separate topic. A collector’s validation deadline, a court’s answer deadline, and a bankruptcy filing deadline are not the same. The federal FDCPA principally regulates covered debt collectors collecting consumer debts; it does not apply identically to every creditor or business debt. State and local laws may add protections. CFPB — Required Debt-Collection Information, FTC — Debt Collection FAQs, CFPB — Stopping Collector Contact.