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Answer:

Each of the 94 federal judicial districts handles bankruptcy matters, and in almost all districts, bankruptcy cases are filed in the bankruptcy court. Bankruptcy laws help people who can no longer pay their creditors get a fresh start by liquidating their assets to pay their debts, or by creating a repayment plan.

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The court issues a bankruptcy discharge releasing the debtor from liability for specific debts. The bankruptcy discharge prevents creditors or collection agencies from pressuring borrowers over their debts.

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