GENERAL BANKRUPTCY INFORMATION
The Bankruptcy Code was enacted by Congress in 1978. Along with this Code, a system of bankruptcy courts was established. There is a bankruptcy court for each judicial district in the country, approximately 90 districts in all. For every Bankruptcy court, the person with the decision-making power is the Bankruptcy Judge. Bankruptcy Judges are appointed by the Court of Appeals for that particular circuit, and they serve fourteen (14) year terms. In addition, in each case a Trustee is appointed to oversee that case. The Trustee carries out the routine administration of each case, while the Judges oversee the legal matters.
The fundamental goal of the Bankruptcy laws are to give debtors a "fresh start". As stated by the United States Supreme Court, a fresh start "[G]ives to the honest but unfortunate debtor...a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt." Local Loan Co. vs. Hunt, 292 U.S. 234, 244 (1934).
This is done through the bankruptcy discharge, which releases debtors from liability for their debts and prevents creditors from ever taking any actions to collect those debts.
There are six basic types of bankruptcy cases under the Bankruptcy Code.
Chapter 7, the Liquidation Bankruptcy
Chapter 13, the Repayment Bankruptcy
Chapter 11, the Reorganization Bankruptcy
Chapter 12, the Farming/Fisherman Bankruptcy
Chapter 9, the Municipality Bankruptcy
Chapter 15, Cross-Border Cases
Typically, individuals will file using either the Chapter 7 bankruptcy or the Chapter 13 bankruptcy, depending on a variety of factors. For more information, you should meet with a qualified bankruptcy attorney.
The fundamental goal of the Bankruptcy laws are to give debtors a "fresh start". As stated by the United States Supreme Court, a fresh start "[G]ives to the honest but unfortunate debtor...a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt." Local Loan Co. vs. Hunt, 292 U.S. 234, 244 (1934).
This is done through the bankruptcy discharge, which releases debtors from liability for their debts and prevents creditors from ever taking any actions to collect those debts.
There are six basic types of bankruptcy cases under the Bankruptcy Code.
Chapter 7, the Liquidation Bankruptcy
Chapter 13, the Repayment Bankruptcy
Chapter 11, the Reorganization Bankruptcy
Chapter 12, the Farming/Fisherman Bankruptcy
Chapter 9, the Municipality Bankruptcy
Chapter 15, Cross-Border Cases
Typically, individuals will file using either the Chapter 7 bankruptcy or the Chapter 13 bankruptcy, depending on a variety of factors. For more information, you should meet with a qualified bankruptcy attorney.