Individuals, spouses, corporations and other entities file bankruptcy in situations where they can no longer pay their debts. The bankruptcy process involves liquidating assets to pay outstanding debts, and/or creating a repayment plan.
Bankruptcy is covered under federal law and handled in the U.S. Bankruptcy Courts. A bankruptcy filing generally begins when an individual, spouses together, corporation, municipality or other entity files a petition with bankruptcy court. Federal bankruptcy laws provide several different chapters under which bankruptcy can be filed.
Montana law may overlap with bankruptcy laws in circumstances related to exempting certain types of property from creditors’ claims, and/or when a homestead declaration has been filed to protect a debtor’s homestead up to a certain value.