The United States Constitution allows Congress to establish “uniform Laws on the subject of Bankruptcies.” With this power, Congress put into law the “Bankruptcy Code” in 1978. The Bankruptcy Code, which is located at title 11 of the United States Code, has been amended many times since its enactment. It is the uniform federal legislation that authorizes all bankruptcy circumstances.
The procedural components of the bankruptcy process are governed by the Federal Rules of Bankruptcy Procedure (often called the “Bankruptcy Rules”) and local rules of each bankruptcy court. The Bankruptcy Rules incorporate a collection of official forms for usage in bankruptcy cases. The Bankruptcy Code and Bankruptcy Rules (and local rules) spell out the formal legal procedures for dealing with the debt issues of consumers and businesses.
Bankruptcy courts are established for each judicial district in the United States. Every state has one or more districts. There are ninety bankruptcy districts across the country. The bankruptcy courts normally have their own clerk’s offices.
The court official with decision-making power for federal bankruptcy situations is the US bankruptcy judge, a court officer of the US district court. The bankruptcy judge can preside over any question linked to a bankruptcy situation, like qualifications to file or whether or not a debtor ought to obtain a discharge of debts. Much of the bankruptcy process is administrative in nature, however, and is conducted away from the courthouse. In legal matters under chapters 7, 12, or 13, and from time to time in chapter 11 cases, this administrative procedure is completed by a trustee who is appointed to oversee the situation.
A debtor’s engagement with the bankruptcy judge is generally rather limited. A common chapter 7 debtor will not show up in court and will not appear before the bankruptcy judge unless an objection is brought up in the case. A chapter 13 debtor may only have to show up before the bankruptcy judge at a plan confirmation hearing. Generally, the only formal proceeding at which a debtor will need to show up is the meeting of creditors, which is typically held at the offices of the U.S. trustee. This gathering is informally called a “341 hearing” because section 341 of the Bankruptcy Code requires that the debtor attend this conference so that creditors can question the debtor about debts and property.
Making the decision of whether or not to file for chapter 13 can be complicated. A Detroit chapter 13 lawyer can help you address your concerns. You may have many questions that require answers. Talk with a local Southfield chapter 13 lawyer about your options. Get chapter 13 help today.
