bankruptcy court

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There are 94 federal judicial districts.  Each of these districts handle bankruptcy matters. Bankruptcy courts refer to the courts in each district that specifically hear bankruptcy cases. In almost every district, bankruptcy courts hear bankruptcy cases. Additionally, 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). Most cases are filed under the three main chapters of the Bankruptcy Code: Chapter 7, Chapter 11, and Chapter 13.

See e.g., In re Marciano 459 B.R. 27.

[Last updated in July of 2022 by the Wex Definitions Team]