Bankruptcy Law - Chapter 7, 11, 13
These cases are heard in specialized federal courts called bankruptcy courts. Each state has at least one bankruptcy court which is part of the District Courts of the U.S system. Some states have several and each holds jurisdiction over large regions of the state. Bankruptcy laws are federally mandated, but each state has specific laws identifying exempt property, and the individual filing bankruptcy may choose whether to use the federal exemption or his state exemption.
There are a number of chapters of the Bankruptcy Code, but the three main ones are the 7th, the 11th, and the 13th. Personal bankruptcies are most commonly filed under Chapters 7 and 13. Chapter 7 allows individuals to eliminate much of their debt by liquidating non-exempt property to repay creditors, and Chapter 13 permits them to keep all of their property, but they must repay all or a portion of their debts over a set time period, most commonly three to five years.
Businesses may also file for bankruptcy under Chapter 7. However, if a company wants to stay in business, it must reorganize its debts and use business income to repay its creditors, most often under Chapter 11.
Bankruptcy Law Definition
Bankruptcy law is a federal legal process for debtors seeking to eliminate or repay their debts. Bankruptcy’s governing federal statutory law is contained in Title 11 of the U.S. Code. It provides for a federal system of statutes and courts which permits debtors to place their financial affairs under the control of the bankruptcy court.
Bankruptcy court is the specialized federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, which are branches of the District Courts of the U.S., and each one's territory covers several counties.
The most common types of personal bankruptcies for individuals are Chapter 7, which allows debtors to wipe out many debts they’ve accumulated in exchange for giving up non-exempt property to be sold to repay creditors, and Chapter 13, which allows debtors to keep all of their property and repay all or a portion of their debts over three to five years. Businesses can file for Chapter 7 or Chapter 11 bankruptcy. Chapter 11 allows a company to reorganize its debt to stay in business and use business income to pay his or her debts. Visit Us at Google+ Copyright HG.org
Bankruptcy Law - US
- ABA - Bankruptcy
In recent years, as more and more Americans have used credit, the amount of problem debt has grown greatly—and so has the bankruptcy rate. There are many options for dealing with debt. Whether bankruptcy is the right solution depends on the facts of each particular situation. This section will help you understand the rules of the two major forms of personal bankruptcy and the other options that exist for those in financial straits.
- Bankruptcy - Overview
Bankruptcy law provides for the development of a plan that allows a debtor, who is unable to pay his creditors, to resolve his debts through the division of his assets among his creditors. This supervised division also allows the interests of all creditors to be treated with some measure of equality. Certain bankruptcy proceedings allow a debtor to stay in business and use revenue generated to resolve his or her debts. An additional purpose of bankruptcy law is to allow certain debtors to free themselves (to be discharged) of the financial obligations they have accumulated, after their assets are distributed, even if their debts have not been paid in full.
- Bankruptcy Resources - Filing for Bankruptcy Without an Attorney
Corporations and partnerships must have an attorney to file a bankruptcy case. Individuals, however, may represent themselves in bankruptcy court. While individuals can file a bankruptcy case without an attorney or "pro se," it is extremely difficult to do it successfully. It is very important that a bankruptcy case be filed and handled correctly. The rules are very technical, and a misstep may affect a debtor's rights. For example, a debtor whose case is dismissed for failure to file a required document, such as a credit counseling certificate, may lose the right to file another case or lose protections in a later case, including the benefit of the automatic stay.
- Chapter 11 Bankruptcy - Reorganization Under the Bankruptcy Code
The chapter of the Bankruptcy Code providing (generally) for reorganization, usually involving a corporation or partnership. (A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11.)
- Chapter 13 Bankruptcy
Proceedings under Chapter 13 (wage earner's bankruptcy) require you to propose a plan for repaying all or a portion of the debt in installments from your income.
- Chapter 7 Bankruptcy - Liquidation Under the Bankruptcy Code
A chapter 7 case begins with the debtor filing a petition with the bankruptcy court serving the area where the individual lives or where the business debtor is organized or has its principal place of business or principal assets.
- Department of the Treasury - Financial Stability Plan
Today, our nation faces a severe financial crisis. It is a crisis of confidence, of capital, of credit and of consumer and business demand. Rather than providing the credit that allows new ideas to flourish into new jobs, or families to afford homes and autos, we have seen banks and other sources of credit freeze up – contributing to and potentially accelerating what already threatens to be a serious recession. Our Financial Stability Plan will help ensure that businesses with good ideas have the credit to grow and expand, and working families can get the affordable loans they need to meet their economic needs and power an economic recovery.
- Federal Reserve System - Troubled Asset Relief Program (TARP)
The federal banking and thrift regulatory agencies encourage all eligible institutions to use the Treasury Department's Capital Purchase Program and the Federal Deposit Insurance Corporation's Temporary Liquidity Guarantee Program. On October 14, 2008, the U.S. government announced a series of initiatives to strengthen market stability, improve the strength of financial institutions, and enhance market liquidity
- Federal Rules of Bankruptcy Procedure (2012)
The rules that govern bankruptcy proceedings in Federal courts.
- IRS - Bankruptcy Fraud
According to the United States Bankruptcy Court, there were more than 1.2 million bankruptcy filings in fiscal year 2012. Bankruptcy fraud results in serious consequences that undermine public confidence in the system, taint the reputation of honest citizens seeking protection under the bankruptcy statutes, and have a negative impact on voluntary compliance in our income tax system. With so much at stake, the detection and prosecution of bankruptcy fraud continues to be an area of focus for the IRS, as well as the Department of Justice.
- Means Testing - Census Bureau, IRS Data and Administrative Expenses Multipliers
Means testing refers generally to the eligibility for relief for debtors who have sufficient financial means to pay a portion of their debts. The means test is perhaps best recognized in the United States as the test used by courts to determine eligibility for Title 11 of the United States Code Chapter 7 or Chapter 13 bankruptcy.
- SEC - Corporate Bankruptcy
Federal bankruptcy laws govern how companies go out of business or recover from crippling debt. A bankrupt company, the "debtor," might use Chapter 11 of the Bankruptcy Code to "reorganize" its business and try to become profitable again. Management continues to run the day-to-day business operations but all significant business decisions must be approved by a bankruptcy court. Under Chapter 7, the company stops all operations and goes completely out of business. A trustee is appointed to "liquidate" (sell) the company's assets and the money is used to pay off the debt, which may include debts to creditors and investors.
- United States Bankruptcy Courts
Each of the 94 federal judicial districts handles bankruptcy matters, and in almost all districts, bankruptcy cases are filed in the bankruptcy court. Bankruptcy cases cannot be filed in state court. Bankruptcy laws help people who can no longer pay their creditors get a fresh start by liquidating their assets to pay their debts, or by creating a repayment plan.
- US Code - Title 11 - Bankruptcy
Bankruptcy law is federal statutory law contained in Title 11 of the United States Code. Congress passed the Bankruptcy Code under its Constitutional grant of authority to "establish... uniform laws on the subject of Bankruptcy throughout the United States." States may not regulate bankruptcy though they may pass laws that govern other aspects of the debtor-creditor relationship.
- US Trustee Program - Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA)
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, which opens a new era in the history of bankruptcy law and practice, was passed by Congress and signed into law by President Bush on April 20, 2005. The United States Trustee Program is the component of the Department of Justice that protects the integrity of the nation’s bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws.
United States Bankruptcy Courts
- Alabama Middle Bankruptcy Court
- Alabama Northern Bankruptcy Court
- Alabama Southern Bankruptcy Court
- Alaska Bankruptcy Court
- Arizona Bankruptcy Court
- Arkansas Eastern & Western Bankruptcy Court
- California Central Bankruptcy Court
- California Eastern Bankruptcy Court
- California Northern Bankruptcy Court
- California Southern Bankruptcy Court
- Colorado Bankruptcy Court
- Connecticut Bankruptcy Court
- Delaware Bankruptcy Court
- District of Columbia Bankruptcy Court
- Florida Middle Bankruptcy Court
- Florida Northern Bankruptcy Court
- Florida Southern Bankruptcy Court
- Georgia Middle Bankruptcy Court
- Georgia Northern Bankruptcy Court
- Georgia Southern Bankruptcy Court
- Hawaii Bankruptcy Court
- Idaho Bankruptcy Court
- Illinois Central Bankruptcy Court
- Illinois Northern Bankruptcy Court
- Illinois Southern Bankruptcy Court
- Indiana Northern Bankruptcy Court
- Indiana Southern Bankruptcy Court
- Iowa Northern Bankruptcy Court
- Iowa Southern Bankruptcy Court
- Kansas Bankruptcy Court
- Kentucky Eastern Bankruptcy Court
- Kentucky Western Bankruptcy Court
- Louisiana Eastern Bankruptcy Court
- Louisiana Middle Bankruptcy Court
- Louisiana Western Bankruptcy Court
- Maine Bankruptcy Court
- Maryland Bankruptcy Court
- Massachusetts Bankruptcy Court
- Michigan Eastern Bankruptcy Court
- Michigan Western Bankruptcy Court
- Minnesota Bankruptcy Court
- Mississippi Northern Bankruptcy Court
- Mississippi Southern Bankruptcy Court
- Missouri Eastern Bankruptcy Court
- Missouri Western Bankruptcy Court
- Montana Bankruptcy Court
- Nebraska Bankruptcy Court
- Nevada Bankruptcy Court
- New Hampshire Bankruptcy Court
- New Jersey Bankruptcy Court
- New Mexico Bankruptcy Court
- New York Eastern Bankruptcy Court
- New York Northern Bankruptcy Court
- New York Southern Bankruptcy Court
- New York Western Bankruptcy Court
- North Carolina Eastern Bankruptcy Court
- North Carolina Middle Bankruptcy Court
- North Carolina Western Bankruptcy Court
- North Dakota Bankruptcy Court
- Ohio Northern Bankruptcy Court
- Ohio Southern Bankruptcy Court
- Oklahoma Eastern Bankruptcy Court
- Oklahoma Northern Bankruptcy Court
- Oklahoma Western Bankruptcy Court
- Oregon Bankruptcy Court
- Pennsylvania Eastern Bankruptcy Court
- Pennsylvania Middle Bankruptcy Court
- Pennsylvania Western Bankruptcy Court
- Puerto Rico Bankruptcy Court
- Rhode Island Bankruptcy Court
- South Carolina Bankruptcy Court
- South Dakota Bankruptcy Court
- Tennessee Eastern Bankruptcy Court
- Tennessee Middle Bankruptcy Court
- Tennessee Western Bankruptcy Court
- Texas Eastern Bankruptcy Court
- Texas Northern Bankruptcy Court
- Texas Southern Bankruptcy Court
- Texas Western Bankruptcy Court
- Utah Bankruptcy Court
- Vermont Bankruptcy Court
- Virginia Eastern Bankruptcy Court
- Virginia Western Bankruptcy Court
- Washington Eastern Bankruptcy Court
- Washington Western Bankruptcy Court
- West Virginia Northern Bankruptcy Court
- West Virginia Southern Bankruptcy Court
- Wisconsin Eastern Bankruptcy Court
- Wisconsin Western Bankruptcy Court
- Wyoming Bankruptcy Court
Organizations Related to Bankruptcy Law
- American Bankruptcy Institute
The American Bankruptcy Institute is the largest multi-disciplinary, non-partisan organization dedicated to research and education on matters related to insolvency.
- Bankruptcy Advice and Personal Bankruptcy Law Information
United States bankruptcy advice law is available for the debtor, who can’t pay his creditors, to resolve the debtor’s debts through the division of his assets among his creditors. This supervised division also allows the interests of all creditors to be treated with some measure of equality. Few bankruptcy law proceedings allow a debtor to stay in business and use revenue generated to resolve his or her debts.
- Bankruptcy Law Information
BankruptcyLawInformation.com is a customer advocate site designed to tell you, the people what you need to know about this new law with words you can understand.
- Bankruptcy Law Network
The Bankruptcy Law Network is a diverse and unaffiliated group of bankruptcy lawyers and consumer advocates. What brings us together is our common devotion to you, the consumer. We recognize that living well in America has become increasingly more difficult for the average consumer — a group which is commonly known as the “middle class”. Tragically, the roadblocks to financial freedom and stability have proliferated and include rising interest rates, predatory loans, Adjustable Rate Mortgages, inaccurate credit reports, obnoxious and unethical debt collectors and “easy” credit.
BankruptcyData.com is the premier business bankruptcy resource on the web. BankruptcyData.com provides instant access to information on thousands of business bankruptcy filings from federal bankruptcy districts. Currently there are over 400,000 business bankruptcies in the database.
- National Association of Bankruptcy Trustees (NABT)
The National Association of Bankruptcy Trustees ("NABT") is a nonprofit association formed in 1982 to address the needs of chapter 7 bankruptcy trustees and to promote the effectiveness of the bankruptcy system as a whole.
- National Association of Consumer Bankruptcy Attorneys (NACBA)
NACBA is the only national organization dedicated to serving the needs of consumer bankruptcy attorneys and protecting the rights of consumer debtors in bankruptcy. Formed in 1992, NACBA now has more than 4,500 members located in all 50 states and Puerto Rico.
- National Consumer Law Center (NCLC) - Bankruptcy
NCLC works to defend the rights of low-income consumers and to advance economic justice. We concentrate on working for fairness in financial services, wealth building and financial health, a stop to predatory lending and consumer fraud, and protection of basic energy and utility services for low income families. NCLC devotes special attention to vulnerable populations including immigrants, elders, homeowners, former welfare recipients, victims of domestic violence, military personnel, and others.
- United States Trustee Program - Bankruptcy
The United States Trustee Program is a component of the Department of Justice that seeks to promote the efficiency and protect the integrity of the Federal bankruptcy system. To further the public interest in the just, speedy and economical resolution of cases filed under the Bankruptcy Code, the Program monitors the conduct of bankruptcy parties and private estate trustees, oversees related administrative functions, and acts to ensure compliance with applicable laws and procedures. It also identifies and helps investigate bankruptcy fraud and abuse in coordination with United States Attorneys, the Federal Bureau of Investigation, and other law enforcement agencies.
Publications Related to Bankruptcy Law
- Bankruptcy Fraud Resource Center
A blog which presents articles, daily news, commentaries and analysis on the subject of bankruptcy fraud.
- Federal Reserve Board - Bankruptcy
Provides various information on bankruptcy, press releases and articles.
- IRS - Bankruptcy Tax Guide
This publication covers the federal income tax aspects of bankruptcy. Bankruptcy proceedings begin with the filing of a petition in bankruptcy court, and that filing creates the bankruptcy estate.
Articles Related to Bankruptcy Law
- Taking the Mystery out of Bankruptcy AuctionsChapter 7 bankruptcy, also known as "debt liquidation," allows people to wipe out most kinds of debt and achieve a financial fresh start.
- Tips for Finding the Right Bankruptcy Lawyer for YouIndividuals facing the possibility of bankruptcy are invariably under great stress, both emotional and financial.
- Guide to Restructuring & Insolvency - Greek ChapterReproduced with permission from Law Business Research Ltd. This article was first published in Getting the Deal Through – Restructuring & Insolvency 2013, (published in May, 2013; contributing editor:Bruce Leonard).
- UAE Law - Consumer Protection RightsThe protection of consumer rights is one of the great responsibility of UAE Government. By availing these services the consumers can save their money and time through long court litigations while having cost effective and prompt justice for them through dispute resolution proceedings.
- What Comes First: Bankruptcy or Divorce?It’s a reality that bankruptcy and divorce often coincide, but the question is, which should come first, bankruptcy or divorce? The answer to that question will depend on your individual set of circumstances and if you want to take the risk and wait.
- What Is a Bank LevyImagine getting a letter in the mail informing you that your mortgage payment has been rejected by your bank for insufficient funds. This may be because your bank account has been levied by another creditor whom you owed money.
- Debt Recovery in TurkeyThis article is an overview of Debt Recovery Procedure in Turkey
- Garnishment (Seizure Of Assets) as a Means of Repossession - GermanyThe foreclosure law provides creditors a lot of ways to enforce their claims against the debtor. Garnishment (the seizure of assets) is one of the most popular among them.
- What You Should Know About BankruptcyThe average person knows little about bankruptcy, but many have heard common bankruptcy myths floating around. If you are drowning in debt, this is what you should know about the bankruptcy basics.
- Debt Collection in Thailand: Getting Your Money BackRecovering an unpaid debt in Thailand is often a tricky task that can be made more distasteful when the debtor, whether it is Thai or a foreigner, refuses to settle even after numerous attempts. Many expatriates and even companies, who do business in Thailand, have run into difficulties with debt recovery.
- All Debtor and Creditor Law Articles
Articles written by attorneys and experts worldwide discussing legal aspects related to Debtor and Creditor including: bankruptcy, collections, credit and mortgage, debt recovery and insolvency.