Bankruptcy courts are specialized courts that handle cases related to bankruptcy, a legal process for individuals or businesses unable to repay their debts. These courts oversee the filing of bankruptcy petitions, evaluate the financial situation of the debtor, and determine how assets will be distributed among creditors. In the United States, bankruptcy courts operate under the federal court system and follow the rules set by the U.S. Bankruptcy Code. They provide a structured environment for debtors to seek relief and for creditors to recover some of their owed amounts, ensuring fair treatment for all parties involved.