Organization of the Bankruptcy Code
Organization of the Bankruptcy Code
Bankruptcy in the United States is a matter placed under Federal jurisdiction by the United States Constitution (in Article 1, Section 8, Clause 4), which allows Congress to enact "uniform Laws on the subject of Bankruptcies throughout the United States". The provision, however, is not self-executing and is implemented in statute. Much of the relevant statutes are incorporated within the Bankruptcy Code, located in Title 11 of the United States Code, and amplified by state law in the many places where federal law either is absent or expressly defers to state law. Other bankruptcy statutes are found in Titles 18 (crimes), 26 (internal revenue code) and 28 (Judicial Procedure) of the United States Code.
While bankruptcy cases are always filed in United States bankruptcy court (which are units of the United States district courts), bankruptcy cases, particularly those regarding the validity of claims and exemptions, are often highly dependent on state law. State law therefore plays a major role in many bankruptcy cases and it is often unwise to generalize bankruptcy issues across state lines.
Bankruptcy chapters
There are six types of bankruptcy under the Bankruptcy Code, located at Title 11 of the United States Code:
* Chapter 7 (a liquidation-style case for individuals or businesses),
* Chapter 9 (Municipal bankruptcy)
* Chapter 11 (a more complex rehabilitation-style case used primarily by business debtors, but sometimes by individuals with substantial debts and assets)
* Chapter 12 (a payment plan or rehabilitation-style case for family farmers and fishermen)
* Chapter 13 (a payment plan or rehabilitation-style case for individuals with a regular source of income)
* Chapter 15 (ancillary and other cross-border cases)
The most common types of personal bankruptcy for individuals are Chapter 7 and Chapter 13.
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