bankruptcy basics

Unfortunately, bankruptcy is part of life. Money comes, and money goes. What’s imperative is to use it wisely when you have it, so you don’t need it when you don’t.

However, if you find yourself in bankruptcy, this article might be just the thing for you.

Rules and Regulations

The United States Constitution permits Congress to establish “uniform Laws on the subject of Bankruptcies” in Article I, Section 8. In 1978, Congress passed the “Bankruptcy Code.” Since its inception, the Bankruptcy Code, codified as title 11 of the United States Code, has been amended several times. All bankruptcy cases are governed by federal law.

The Federal Rules of Bankruptcy Procedure (commonly referred to as the “Bankruptcy Rules”) and each bankruptcy court’s local rules control the bankruptcy procedure’s procedural components. The Bankruptcy Rules provide a collection of formal paperwork for bankruptcy proceedings. The Bankruptcy Code and Bankruptcy Laws (as well as municipal rules) establish the official legal procedures for dealing with individual and commercial financial difficulties.

Courts and Officials

Each judicial district in the country has its own bankruptcy court, and each state has at least one district. There are 90 bankruptcy districts in the United States. In most cases, bankruptcy courts have their own clerk’s office.

The authorized official with a power of attorney over bankruptcy cases is the United States bankruptcy judge, who is also a judicial officer of the United States district court. The bankruptcy judge has the authority to rule on any issue related to a bankruptcy case. However, most of the bankruptcy procedure is administrative and takes place outside of the courts. This administrative procedure is carried out by a trustee appointed to manage the case only in cases under chapters 7, 12, or 13, and occasionally in matters under chapter 11, where you will need a chapter 11 bankruptcy lawyer in Palm Beach County FL, for example.

Processes and Standards

A debtor’s interaction with the bankruptcy judge is often minimal. Unless an objection is lodged in the case, a typical chapter 7 debtor will not appear in court and will not meet the bankruptcy judge. A chapter 13 debtor may only be required to appear before a bankruptcy court for a plan confirmation hearing.

The meeting of creditors, normally conducted in the offices of the U.S. trustee, is usually the sole official process in which a debtor must present. This is colloquially known as a “341 meeting” because section 341 of the Bankruptcy Code compels the debtor to appear for creditors to interrogate the debtor about obligations and assets from Annapolis, for example. You might have to attend with asset acquisition lawyers from Annapolis, MD.

The Bottom Line

If you find yourself in trouble concerning bankruptcy, a chapter 11 bankruptcy lawyer in Palm Beach County, FL, can help you start your bankruptcy process. If you own some assets, it would not be a bad idea to add asset acquisition lawyers in Annapolis, MD, to the posse. Just ensure you’re truthful with them!

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