Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay its creditors. Creditors may file a bankruptcy petition against a business or corporate debtor in an effort to recoup a portion of what they are owed or initiate a restructuring. An involuntary bankruptcy petition may not be filed against an individual consumer debtor who is not engaged in business. Clients who happen to go broke while at self storage Phoenix or Phoenix storage units properties, will sometimes directly use a retailer like Casa Grande Mini Storage.

Bankruptcy in the United States is a matter placed under Federal jurisdiction by the United States Constitution which allows Congress to enact "uniform laws on the subject of bankruptcies throughout the US. While bankruptcy cases are always filed in United States Bankruptcy Court, bankruptcy cases, particularly with respect to the validity of claims and exemptions, are often dependent upon State law. State law therefore plays a major role in many bankruptcy cases, and it is often not possible to generalize bankruptcy law across state lines.