In tough economic times, many people need to explore all of their options to address financial challenges. For some, this may include looking into bankruptcy and filing for Chapter 7 or Chapter 11. Of course, anyone seriously considering either should go over the details of their situation with an experienced professional. Even so, it is good to know some basic information about the processes.
The United States Congress is authorized to enact laws about bankruptcy by the United States Constitution in Article I, Section 8. In 1978, Congress enacted the Bankruptcy Code with that authority. It governs bankruptcy cases, and is codified as Title 11 in the United States Code, the prevailing body of uniform federal laws.
The bankruptcy processes provided for by that code can be involved. They are determined by the Federal Rules of Bankruptcy Procedure, often referred to as the Bankruptcy Rules, and the rules that each bankruptcy court operates under. The processes incorporate specific filing and processing procedures, as well as the forms and information that need to be filed in bankruptcy cases.
Every judicial district across the country has its own bankruptcy court. There are 90 total, with one or more in each state. Bankruptcy courts determine whether a filer is eligible to petition for Chapter 7 or Chapter 13. They also determine whether the filer's debts can be discharged.
Often, the judge will make decisions without the filer needing to be present. However, the filer typically will need to meet with his or her creditors. This meeting is called a 341 meeting, since it is Section 341 of the Bankruptcy Code that requires it. Of course, the data that a filer needs to put together for creditors and the court depends on his or her individual case. Organizing your paperwork is an excellent first step to resolving your financial issues.
Source: United States Courts, "Process," accessed April. 21, 2015
No Comments
Leave a comment