The reason the United States Bankruptcy Court is notorious worldwide is due to its historical roots. The US was the first country which recognized the precariousness of a man in debt and took this case to heart to such an extent enough to create laws that protected any person unable to pay his or her debts.
The laws in the United States were then reformed to protect the interests of those in debt and the United States Bankruptcy Courts was established, where individuals could turn to file for bankruptcy. Many reforms and amendments have been made since then the latest being the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). This act was passed due to misuse of the right to file for bankruptcy, as most people used this to avoid paying off their debts. Filing under Chapter 7 allowed them to be completely discharged from their dues leaving creditors with no hope of refund. Now the filing requirements have become stricter to avoid abuse.
Although the union of federal states within the United States works in autonomy, bankruptcy law is a federal law and is applicable to all the states. This means that all bankruptcy cases can only be heard in the United States bankruptcy court. Every single state in the US has its own bankruptcy court and if you file for bankruptcy you should file with the bankruptcy court belonging to your state of residence.
The United States bankruptcy court has 94 federal courts designated to treat bankruptcy pleas as state courts have no jurisdiction over these cases. In each federal court a court clerk is responsible of filing petitions for bankruptcy to save time. The United States bankruptcy court’s staff and administration is provided by the federal government as well as the appointment of the judges. The judges usually remain in term for fourteen years each.
Officially the United States district courts should have jurisdiction on all cases of bankruptcy, but in real terms each of these courts will pass on all cases of bankruptcy to the courts in the area.
Most bankruptcy cases are heard by the US bankruptcy judge and his or her decision is conclusive and binding. This does not mean you are now stuck for action; you can appeal and have the decision reviewed by the district judge or a Bankruptcy Appellate Panel.
Any person that has been overcome by debt does stand a chance to regain an honorable statute and pay off or at least start over a new leaf without being left crushed by the burden of debts. However, it is advisable to consult with a credit counseling agency before filing for bankruptcy in order to determine under which Chapter to file for and if indeed your filing has a chance to be accepted by the United States bankruptcy court.
The United States bankruptcy courts must not be underrated as they impose all laws for bankruptcy concerning US citizens and serve for a specific purpose. This means that you cannot just pop into the nearest court and file for bankruptcy but must go to a federal United States bankruptcy court for all bankruptcy matters.
The paperwork for filing can be complicated and it is essential to meet the deadlines imposed, this is why many choose to hire a bankruptcy lawyer who can simplify the process and secure a successful outcome.
Due to the new rules dictated by the 2005 amendment you must be sure you actually can file for bankruptcy, it is therefore best to ask the advice of a credit counselor to determine all possible options. Whichever counselor you choose he or she has to belong to be a trustee-approved agency.
Not much occurs directly within the United States bankruptcy court, for most of the filing papers are handled by the administration. All the court will do is give power to the bankruptcy judge establish the eligibility of the filling and determine the extent of the discharge from your debts. Chances are you will never even see the bankruptcy judge unless there are reservations with your filing.
Your aim, when filing under Chapter 7 with the United States bankruptcy court is to erase the totality of your debts and these include credit card statements, medical bills and other debts. However, keep in mind that not all debts can be discharged notably child support, tax requirements and other specific payments. So before filing with the United States bankruptcy court, make sure you choose the right Chapter to file under with your legal bankruptcy counselor.
Learn about Chapter 13 Bankruptcy Rules