bankruptcy power

Bankruptcy power is the authority granted to Congress under Article I, Section 8, Clause 4 of the United States Constitution to “establish a uniform rule of naturalization, and uniform laws on the subject of bankruptcies throughout the United States." This clause empowers Congress to create a national system for the discharge, adjustment, and administration of debts. Federal bankruptcy statutes enacted under this power must operate uniformly across the states and remain within the constitutional scope of federal jurisdiction. The bankruptcy power serves both to provide relief to debtors and to ensure equitable treatment of creditors under consistent national standards.

[Last reviewed in October of 2025 by the Wex Definitions Team]

Keywords

• constitutional law

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