The U.S. Bankruptcy Code is a federal law that provides a legal framework for individuals and businesses to address their financial difficulties. It outlines the procedures for filing for bankruptcy, which can help debtors eliminate or reorganize their debts under the protection of the court. There are several chapters within the code, including Chapter 7 for liquidation and Chapter 13 for debt reorganization. Each chapter has specific eligibility requirements and processes, allowing debtors to choose the option that best suits their financial situation while ensuring fair treatment of creditors.