Legal Definitions - bankruptcy power

The bankruptcy power is a power granted to Congress by the United States Constitution. This power allows Congress to create laws that regulate bankruptcies throughout the country. These laws must be consistent across all states and territories.

For example, if a person files for bankruptcy in one state, the laws and procedures for that bankruptcy should be the same as if they filed in another state. This ensures that everyone is treated fairly and that the bankruptcy process is consistent and predictable.

The bankruptcy power is an important tool for managing the financial health of individuals and businesses. By creating a uniform set of laws, Congress can help ensure that people and companies can get back on their feet after a financial setback.