Is bankruptcy a state or federal action?

While most criminal, civil, and family cases are tried in state courts, bankruptcy must be declared in federal court. The laws that govern bankruptcy are part of federal law, not state law, so to initiate bankruptcy proceedings, a person must work within the federal court system. Bankruptcy helps people who can no longer pay their debts to start from scratch by liquidating assets to pay their debts or by creating a repayment plan. Bankruptcy laws also protect companies with financial problems.

This section explains the bankruptcy process and laws. Filing for bankruptcy can help a person cancel a debt or make a plan to pay it off. A bankruptcy case normally begins when the debtor files a petition with the bankruptcy court. A petition can be filed by an individual, by the spouses together, or by a corporation or other entity.

All bankruptcy cases are processed in federal courts in accordance with the rules described in the U.S. UU. There are different types of bankruptcies, which are generally referred to in their chapter in the U.S. In the US, the basics of bankruptcy provide detailed information about filing for bankruptcy.

It is highly recommended to seek the advice of a qualified lawyer, as bankruptcy has long-term financial and legal consequences. People can file for bankruptcy without a lawyer, which is called a pro se filing. Use forms that are numbered in the 100 series to declare the bankruptcy of individuals or married couples. Use the forms that are numbered in the 200 series if you are preparing a bankruptcy on behalf of someone other than a person, such as a corporation, partnership, or limited liability company (LLC).

Sole proprietors should use forms that are numbered in the 100 series. If you need help finding a bankruptcy lawyer, the following resources can help. If you can't afford an attorney, you may qualify for free legal services. This site is maintained by the Administrative Office of the Courts of the United States on behalf of the Federal Judiciary.

The purpose of this site is to provide information from and about the United States Judiciary. The United States Congress responded to Marathon by enacting the Federal Bankruptcy and Judiciary Amendments Act of 1984, 8FootNotePub. The Bankruptcy Reform Act of 1994 amended section 525 to provide that a government unit that operates a scholarship or student loan program and a person or entity that provides student loans insured or guaranteed by the federal government cannot deny an educational benefit based on filing or cancellation. prior to the applicant.