The United States bankruptcy court is the federal court that handles only bankruptcy cases. It is important for you to understand that you can file court petition for bankruptcy in a state court. There are ninety-four federal judicial districts and each of them handles all types of bankruptcy cases.
Some Fast Facts
Following are some fast facts that you must know regarding the United States Bankruptcy Court.
•The duration for which the bankruptcy judge is appointed is usually fourteen years.
•The bankruptcy judge is appointed by the United States court of appeals
•The bankruptcy judge is appointed in the circuit in which the bankruptcy district is located.
•These bankruptcy judges constitute a “unit” of the applicable United States district court in their respective judicial district.
•When a petition is filed for bankruptcy in the United States district courts, most of the times the case is referred to the bankruptcy court.
•However, in some unusual circumstances, the United States district courts also have the right to withdraw the reference and handle the case itself.
•The judgment given by the United States bankruptcy judge is considered as final. However, if you are not satisfied to want to get the decision reviewed, you can re-appeal the case to the district judge or a Bankruptcy Appellate Panel.
The Bankruptcy Court System In The United States
When you file a petition for bankruptcy in the bankruptcy court, first you will have to do some paperwork. It will include submitting all the details regarding the debts you owe, your financial condition, the assets and means that you own, and your inability to pay off the debts. The court has clerks appointed to help with this paperwork. You should note that when you are file for bankruptcy, you are usually not the only person doing that. There will be plenty others as well. Therefore, you may have to wait in the queue the court asks you to show your documents. The court will also ask you certain questions. You may have to visit the United States bankruptcy court, a number of times before the bankruptcy judge could give its final decision. The questions asked would generally include the questions regarding your job, your assets, and the debts you owe. If certain debts you owe are not allowed to be included in the bankruptcy, you will also be informed regarding that.
In most cases, the first thing that the bankruptcy court does after understanding the details regarding your specific case is that they will ask you and your creditors to come to some common terms and get things settled out of the court. If you still could not settle the same, the court will interfere and will decide whether the debtor should be granted or declined bankruptcy. In most cases, where the debtor is genuinely unable to pay off the debts, the United States bankruptcy court grants him or her bankruptcy and the debtor gets relief from debts either completely or partially.