There are ninety-four (94) judicial districts and all of the judicial districts handle bankruptcy matters. Almost all districts have bankruptcy courts that handle bankruptcy cases and bankruptcy cases cannot be filed under the state court.
Bankruptcy laws help debtors who no longer are able to keep up with their debts and pay the creditors. If it becomes unbearable and compromises the standard of living, the bankruptcy law helps them by the liquidation of assets of the debtors (chapter 7 bankruptcy) or by making a repayment plan (chapter 13 bankruptcy). Bankruptcy laws also provide protection to troubled businesses and provide for distributions in a particular manner to business creditors either by reorganization (chapter 13 bankruptcy case) or liquidation (chapter 7 bankruptcy case).
These procedures are covered under Title 11 of the United States Code (which is the bankruptcy code). Most of the bankruptcy cases are filed under 3 common chapters. These are-
- Chapter 7 bankruptcy
- Chapter 11 bankruptcy
- Chapter 13 bankruptcy
Before you file for bankruptcy, you will require legal counsel, who will be able to guide you through the process and can even help you decide if it is the right choice.
If you want good legal counsel and if you live near Los Angeles & Dallas, TX, reach the Recovery law group – (888-297-6203) or visit https://recoverylawgroup.com/bankruptcy/.