Presently, there are 94 federal judicial districts in the United States and each district supervises bankruptcy related issues.US Bankruptcy Courts are based in all the federal judicial districts and the filing of bankruptcy cases is done in these courts. Bankruptcy cases are not filed in the state courts. The bankruptcy laws assist those individuals who are not able to repay their debts to the creditors. They may then have a new beginning by selling off their properties for repayment of debts or providing a repayment scheme.
In addition, bankruptcy laws offer protection to businesses in distress. Arrangements are made for timely repayment to the creditors with the help of debt elimination or modification. All these processes are addressed under the Bankruptcy Code,also known as the Title 11 of the United States Code. Most of the bankruptcy cases are filed according to the three principal Bankruptcy Code Chapters: Chapter 7, 11, and 13.
In 2005, some amendments were made to the Bankruptcy Code. The majority of individual borrowers must now fill out a briefing from a licensed credit counseling organization before they file for bankruptcy .In most states, the Trustee has the responsibility of certifying those who provide this pre-bankruptcy document. The bankruptcy administrator designated for the six districts based in North Carolina and Alabama then sanction them.
Last Updated on : 10th July 2013