Bankruptcy Courts
Justice system of a country is in most cases the last resort for the citizens. Bankruptcy courts are maintained with the objective of giving a fair and impartial hearing to all the parties involved and to resolve issues of bankruptcy with minimal severing of interest for any of the parties involved. Bankruptcy laws serve the purpose of protecting troubles businesses and also provide for systematic notice of creditors grievance by creating orderly distribution of business through reorganization or liquidation. Title 11 of the Bankruptcy Code (the United States Code) covers the procedures to be followed in such scenarios. Majority of the bankruptcy cases are filed under the three main chapters of the Bankruptcy Code, namely Chapter 7, Chapter 11, and Chapter 13.
Bankruptcy courts are federal courts that are entitled to subject-matter jurisdiction over bankruptcy cases. Contrary Federal courts are generally created by the United States Congress under the constitutional power described in Article III. Bankruptcy cases cannot be filed in the state court. Each of the 94 federal judicial districts handles bankruptcy matters. In 1979 the United States Congress created the separate system of bankruptcy courts. The Federal Rules of Bankruptcy Procedure (FRBP) governs procedures in the U.S. bankruptcy courts.
Theoretically, all the United States district courts have subject matter jurisdiction over bankruptcy matters. Still each such district court may, by order, can't;refer't; bankruptcy matters to the bankruptcy court. In practice, most district courts will have a standing;reference; order to the effect that at least initially; all bankruptcy cases in that district are handled, by the bankruptcy court. In queer circumstances, a district court may for a particular case ;withdraw the reference; i.e. take the case or a particular proceeding within the case away from the bankruptcy court and decide the matter itself under 28 U.S.C. (United States Code).
The United States court appoints the bankruptcy judge for a term of 14 years, for the circuit in which the applicable district is located. The bankruptcy judges in each judicial district in regular active service constitute a ;unit of the applicable United States district court. An overwhelming majority of all proceedings appeals in bankruptcy are held before a United States bankruptcy judge. The judge's decision in all matters will be final and subject to appeals to the district court. Also in some judicial circuits, appeals may be taken to a Bankruptcy Appellate Panel ;).
A follower the legalities in bankruptcy should not that the decisions of the Bankruptcy Courts are not collected and published in any official report produced by the government. But the de facto official source for opinions of the Bankruptcy Courts is West's Bankruptcy Reporter, published privately by Thomson West.
