Legally when one files for bankruptcy, there is exemption from paying debtors with the express understanding that one should offer non-exempt assets; these assets are then distributed by the court to the different creditors as payment. Businesses most often file for two kinds: reorganization and liquidation. When one chooses to reorganize, the debtor is allowed to reorganize his resources as well as its debts through maintaining his business; in this way, he can still repay debts with hope of salvaging the business. Through liquidation, all the assets must be sold to have the necessary cash to pay off all debts. Individuals as well can also apply for reorganization bankruptcy in order to recover or retain assets and pay off reduced creditor claims. Further legal protection is provided by the courts through a stay from any kind of lawsuit or forced enforcement of paying obligations. Implemented by statute law (varying in each state), bankruptcy is under Federal jurisdiction by the American Constitution.