Bankruptcy is a way to get a fresh start.  It is governed by federal law that allows individuals or businesses to liquidate their assets or reorganize their financial affairs so that they get a clean financial slate.  People file bankruptcy because they can no longer pay their debts.  This usually occurs when someone has lost a job, has been ill and unable to work, or had a business fail.  Sometimes people must file for bankruptcy when the economy changes such that individuals can no longer pay their mortgages and cannot sell their property.  The U.S. Congress has recognized that when individuals can no longer pay their debts there needs to be a way to give individuals a “fresh start”.  No one plans to file bankruptcy, but the option is available when it is necessary.  There is no shame in using the federal laws designed to assist individuals in these unfortunate circumstances.