A General Overview Of The Bankruptcy Courts In The USA

Andrina James
Bankruptcy Courts Under The Federal Purview

Bankruptcy courts in the United States are federal courts that are given jurisdiction over bankruptcy proceedings. Bankruptcy cases are not permitted to be filed in state courts. Bankruptcy matters are handled by each of the 94 federal judicial districts. The United States Congress created a separate system of bankruptcy courts in the year 1979. Bankruptcy procedures in the United States are governed by the Federal Rules Of Bankruptcy Procedure (FRBP). Most of the proceedings in bankruptcy come under the purview of a United States bankruptcy judge who takes the final decision, subject to appeals to the district court. In certain cases, appeals may also be taken to the Bankruptcy Appellate Panel (BAP).

General Details Regarding The United States Bankruptcy Court

The U.S Bankruptcy court, which is a federal court, is situated in the district of Colorado. It is located in the U.S Custom House in downtown Denver which is one of three judicial federal buildings. The U.S.B.C is a unit that comes under the U.S District Court. The staff of the U.S.B.C includes five Bankruptcy Judgeships, each of whom has two staff members- usually a Secretary and a Law Clerk. The court administration of the U.S.B.C is handled by the Clerk of Court reports to and is appointed by the Bankruptcy Judges. A staff of Deputy Clerks is appointed by the Clerk of Court to handle the filing, administering and docketing of bankruptcy cases. All posts within the U.S.B.C are appointed by the Judicial Branch of the American government.

The positions in the bankruptcy court do not come under the purview of the competitive civil service. However, many of the benefits such as the life and health insurance, leave accrual and paid holidays are similar. Salary levels of the Judiciary position are also comparable with similar private and public sector posts.

Points To Be Noted While Going To A Bankruptcy Court

Once you file for bankruptcy, it must be noted that going to court is a difficult task. There are many debts that you need to continue paying even after discharging bankruptcy-

  • Child support and alimony obligations will not be discharged by bankruptcy proceedings. Hence, collection of these debts can still continue as they are considered as of the highest priority.

  • Earlier, a Chapter 13 bankruptcy could be filed even if you had back taxes whereby the back taxes were considered as a part of the repayment plan. However, now this has been changed under the Bankruptcy Abuse Prevention and Consumer Protection Act wherein these taxes can no longer be discharged.

  • Earlier, student loans could be discharged under a Chapter 7 bankruptcy. However, student loans can no longer be discharged by the bankruptcy court unless you are totally unable to work.

    Bankruptcy courts are specially designated courts for the purpose of bakruptcy cases. If you intend to file for bankryptcy, then seek help from a good bankruptcy lawyer to know about the rules and regulations regarding bankruptcy proceedings. Visit Filing-Bankruptcy.Biz for more information.