It is essential to get informed about how to file bankruptcy in Smith County, Texas when you come to a decision to file bankruptcy. When you file for bankruptcy, you will be able to legally eliminate, restructure, or repay your debts. Federal courts handle all kinds of bankruptcy cases. It is governed by Federal rules and Local rules. Chapter 7 bankruptcy allows you to get rid of your debts which includes credit card debts, medical bills, utility bills, personal loans, finance company loans and more.