Bankruptcy Court -- US Bankruptcy Court

Bankruptcy Court

Bankruptcy cases have to be filed in the federal bankruptcy court, and cannot be filed in the state courts. There are bankruptcy courts that handle bankruptcy-related matters for each of the 94 judicial districts in the nation. Each state has one or more district bankruptcy court locations.. Each US bankruptcy court usually has its own clerk’s office. 

As per the bankruptcy rules, the United States Bankruptcy Judge, who is a judicial officer of the United States district court, is the court official with the power to make decisions with regard to all matters connected to bankruptcy cases. This includes deciding about the eligibility to file a bankruptcy case, and making decisions regarding discharge of debts. 

The bankruptcy process involves a lot of administrative work that is not conducted in the district bankruptcy court. This administrative work is usually carried out by trustee, who is appointed by the court. The degree of involvement of the debtor with the bankruptcy judge is usually very low. 

In most cases the only time the debtor will have to appear at a formal proceeding is at the creditor’ meeting, which is held at the offices of the US Trustee. As per the bankruptcy rule, the debtor has to attend this meeting and to answer the questions of the trustee and creditors under oath. 



A fundamental goal of the federal bankruptcy process is to give relief from their debts, so they can make a fresh start, without the anxiety and discouragement of pre-existing debts. 

There are six types of bankruptcy cases as per the Bankruptcy Code:

Chapter 7 is called liquidation is an orderly procedure that is conducted under the supervision of the court by a trustee who sells off the assets of the debtor and distributes the proceeds among the creditors. 

Chapter 13 is called adjustment of debts of an individual with a regular source of income. It allows is often preferred because it allows debtors to keep valuable assets including their homes, and to put forward a proposed plan to repay their creditors over a period of 3 to 5 years. 

Chapter 11 is called reorganization and is normally used by business enterprises that want to continue to operate, while they keep making repayments to their creditors under a plan of reorganization approved by the bankruptcy court. 

Chapter 12 is called adjustment of debts of a family farmer or fisherman, and it provides relief to farmers and fishermen who have a regular income. The process of Chapter 12 is very similar to that of Chapter 13 and it involves submission of a plan by the debtor to repay the debts over a period of 3 years, which can be extended to 5 years by the court. 

Chapter 9 is called adjustment of debts of a municipality, and it involves for reorganization, similar to the provisions of Chapter 11. 

Chapter 15 is called ancillary and other cross-border cases, and it is meant to deal with cases of cross-border insolvency.

United States Bankruptcy (Home Page)