Article I, Section 8, of the United States Constitution authorizes Congress to enact “uniform Laws with regards to Bankruptcies.” Under this grant of authority, Congress enacted the “Bankruptcy Code” in 1978. The Bankruptcy Code, which is codified as title 11 of the United States Code, has been amended a couple of times considering its enactment. It is the uniform federal law that governs all bankruptcy cases.
The procedural facets of the bankruptcy procedure are ruled by means of the Federal Rules of Bankruptcy Procedure often referred to as the “Bankruptcy Rules” and local laws of each and every bankruptcy court. The Bankruptcy Rules contain a set of legitimate forms to be used in bankruptcy cases. The Bankruptcy Code and Bankruptcy Rules and local rules set forth the formal legal processes for dealing with the debt issues of individuals and businesses.
There is a bankruptcy court for each and every judicial district within the country. Each state has a number of districts. There are 90 bankruptcy districts across the country. The bankruptcy courts usually have their own clerk’s offices. The court official with decision-making power over federal bankruptcy cases is the United States bankruptcy judge, a judicial officer of the United States district court. The bankruptcy judge would possibly come to a decision to any matter connected with a bankruptcy case, such as eligibility to file or whether or not a debtor will have to obtain a discharge of debts.
The Trustee
Much of the bankruptcy process is administrative, however, and is carried out away from the courthouse.
This administrative procedure is frequently managed through the bankruptcy trustee. The bankruptcy trustee is an individual appointed to supervise this process.
Bankruptcy methods are regularly cited as “Chapter.” Each Chapter refers to the Bankruptcy Code. The most bankruptcy filings are performed under Chapter 7, Chapter 11, and Chapter 13 of the Bankruptcy Code. Each Chapter differs and no one Chapter will likely be best for each and every individual or business.
Chapter 13
The trustee in a Chapter 13 reorganization bankruptcy oversees the reimbursement procedure to make sure that the debtor, the person who filed for bankruptcy, is complying with the new responsibilities under the reorganization.
Chapter 7
In a Chapter 7 bankruptcy, the trustee liquidates the non-exempt assets of the debtors and makes use of the proceeds of the sale to repay the creditors of that specific debtor.
Chapter 11
In Chapter 11 bankruptcy filings, the trustee will get together with the creditors of the debtor |as a way to create a possible reorganization plan. During each and every process, the trustee is essential and powerful. If a debtor or creditor believes a trustee has been unfairly bias or inappropriate with respect to the Bankruptcy Code, the debtor or creditor would possibly appeal to the trustee’s decision.
Links:
Links:
- Minneapolis Bankruptcy Procedures: The Effect on Taxes and Estates
- Minneapolis Bankruptcy Filings: What are the Areas of Caution You Should Be Aware of Before Filing Bankruptcy?
- Minneapolis Bankruptcy Discharge: When is it Automatic and When May a Creditor Object?
- Minneapolis Bankruptcy Discharge: What is a Discharge in Bankruptcy?
