Bankruptcy court

There are 94 federal judicial districts.  Each of these handle bankruptcy matters.  In almost every district, bankruptcy courts hear bankruptcy cases and bankruptcy cases cannot be filed in state court. Bankruptcy laws help debtors who can no longer pay their creditors start over through liquidation of their assets to pay their debts, or creation of a repayment plan.  Bankruptcy laws also provide protection for troubled businesses and provide for distributions in an orderly manner to business creditors through either reorganization or liquidation. These procedures are covered under Title 11 of the United States Code (which is the Bankruptcy Code). The vast majority of cases are filed under the three main chapters of the Bankruptcy Code: Chapter 7, Chapter 11, and Chapter 13.