Federal courts are established by the U.S. Constitution to hear cases that pertain to the nation as a whole or involve more than one state. Federal courts handle about one million cases per year. This includes a substantial number of bankruptcy filings, while criminal cases account for approximately 10% of the total filings in federal courts. State courts, on the other hand, are established by each state, or by a county or city within the state. They hear cases pertaining to local, county or statewide matters. State courts handle approximately 30 million civil and criminal cases per year.