Bankruptcy Law

Through Bankruptcy law, the debtors might resolve their financial issues and have a fresh start through liquidation or implementation of payment plans to repay debts. A bankruptcy case normally begins when the debtor files a petition with the bankruptcy court.  

Bankruptcy law is federal law. Bankruptcy law consists of Title 11 of the United States Code and judicial decisions.

There are different types of bankruptcies. The chapters mentioned below refer to the chapters under Title 11 of the U.S. Code. 

• Individuals may file Chapter 7 or Chapter 13 bankruptcy, depending on the specifics of their situation.
• Municipalities—cities, towns, villages, taxing districts, municipal utilities, and school districts may file under Chapter 9 to reorganize.
• Businesses may file bankruptcy under Chapter 7 to liquidate or Chapter 11 to reorganize.
• Chapter 12 provides debt relief to family farmers and fishermen.
• Bankruptcy filings that involve parties from more than one country are filed under Chapter 15.

United States Federal Bankruptcy Courts have jurisdiction over bankruptcy law. Most federal districts have separate Bankruptcy Court for federal filings. Bankruptcy cases cannot be filed in state court.