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Is Bankruptcy Court Federal Or State

Interpreters To Communicate With Registry

Bankruptcy Basics – Part 1: Introduction

If you need an interpreter to communicate with Registry staff you can call 131 450 and speak to an interpreter. Ask them to set up a three-way conversation between you, an interpreter and your nearest Federal Court of Australia;Registry. If you live in Western Australia, you may directly contact the Registry staff, who will arrange a telephone interpreter for you.

It is your responsibility to arrange and pay for the cost of a translator to translate documents sent to you by the Court or the respondent.

Gambling With Bankruptcy Exemptions

In bankruptcy cases, individual debtors have the privilege of retaining certain amounts or types of property that otherwise would be subject to liquidation or seizure by creditors in order to satisfy debts. Laws protecting these forms of property are called exemptions.

Consistent with the goal of allowing the debtor a “fresh start,” exemptions in bankruptcy cases help ensure that the debtor, upon emerging from bankruptcy, is not destitute. Exemption statutes generally permit the debtor to keep such things as a home, a car, and personal goods like clothes. Although exemptions inhibit the creditor’s ability to collect debts, they relieve the state of the burden of providing the debtor’s basic needs.

The bankruptcy code provides a list of uniform exemptions but also allows individual states to opt out of these exemptions . Thus, the types and amounts of property exemptions differ greatly and depend upon the debtor’s state of residence.

Despite the broad variance among states when it comes to bankruptcy exemptions, critics charge that even the uniform federal system can be grossly unfair. For example, assume two debtors, Arlene and Ben, each have estates valued at $28,000. Arlene, a dentist, has $15,000 of in her home. She has $8,000 worth of furniture and household goods. Her car is worth $4,000, and she owns dental tools valued at $1,000.

Further readings

Epstein, David G. 2002. Bankruptcy and Related Law in a Nutshell. St. Paul, Minn.: West Group.

Cross-references

Things You Should Know About The Bankruptcy Court System

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In a Nutshell

The bankruptcy court oversees bankruptcy cases filed in the United States. The court maintains the records for all bankruptcy cases.

Odds are, if you have inquired about filing for bankruptcy, your research has included some mention of the U.S. Bankruptcy Court and/or the U.S. District Court and may be wondering what the bankruptcy court does exactly.

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How A Case Gets Moved To Bankruptcy Court

It all starts when someone involved in the state case files for bankruptcy. The matter picks up traction when one of the parties decides that they would stand a better chance of winning in the bankruptcy court.

Next, a motion gets filed asking for the transfer. In almost every instance, the motion filer argues that the case should be transferred for the following reason: The matter in state court will need to be addressed by the bankruptcy court too, and that piecemeal litigation can be inefficient and lead to contradictory results.

Here are a few types of cases in which this argument might work:

  • Fraud litigation. A creditor files suit against an individual debtor for a business debt and claims that the debtor committed fraud. A court decision that finds the debtor committed fraud could affect whether the debt is dischargeable in the bankruptcy case.
  • Personal injury litigation. A debtor files suit against a third party for personal injury in a car accident . A decision for the debtor could significantly impact how much money will be available to pay creditors.
  • Business litigation. Shareholders file several lawsuits against a financially distressed corporation for failing to pay dividends in state court. If the corporation files a Chapter 11 bankruptcy, the shareholders might ask to bring the lawsuit into bankruptcy court to save money.

Someone who opposes removal can ask the bankruptcy court to remand the case back to state court.

Can I Refile My Bankruptcy Case In Another Court

Federal Bankruptcy and State Court Receivership: Pros and ...

Once the Bankruptcy Court makes a decision, it is unlikely that the debtor can refile the same bankruptcy claim in a different court. A bankruptcy appeal can be taken to district court as noted above if either party to the bankruptcy does not agree to use the Bankruptcy Appellate Panel . The United States District Court has jurisdiction over bankruptcy cases. The Bankruptcy Court was created by the U.S. District Court to streamline the bankruptcy case process.

The Bankruptcy Court can dismiss a bankruptcy case with or without prejudice. These are legal terms that have specific meanings. In cases where a bankruptcy case is dismissed without prejudice, the debtor can refile their case immediately. If the case is dismissed without prejudice, a debtor can restart the process of their case from the beginning. No information from the previous case will be used against the debtor. If the debtor made any errors or omissions in the previous case, the debtor can refile their case and correct them.

A bankruptcy case may be dismissed without prejudice due to the following factors:

  • The debtor failed to file a required form with the court;
  • The debtor failed to pay court costs or fees;
  • The debtor failed to provide all the necessary paperwork;
  • The debtor failed to attend a hearing; and/or
  • The debtor failed to follow any required procedures.

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Temporary Bankruptcy Judgeships Extension Act Of 2012

29 previously-existing temporary bankruptcy judgeships were set to expire within months of May 2012. Many of these temporary positions, approved for five-year terms, were created in 2005 to deal with an increase in bankruptcy filings. H.R. 4967, or the Temporary Bankruptcy Judgeships Extension Act of 2012, signed by Obama on May 31, 2012, extends these judgeships for another five years.

How Do I Appeal A Bankruptcy Court Decision

If a party to a bankruptcy decision is not satisfied or disagrees with the outcome, they may be able to appeal the judgeâs decision. The bankruptcy appeal process can begin with a Bankruptcy Appellate Panel or the United States District Court, depending on the jurisdiction. In order for an appeal to be successful, there must have been wrongdoing or failure by the judge. Simply because a party does not like the outcome does not mean they can successfully appeal.

If the jurisdiction uses a Bankruptcy Appellate Panel, both parties must agree the BAP can hear the appeal. There are different procedures for BAP in each jurisdiction. If the parties do not agree to have a Bankruptcy Appellate Panel hear the appeal, the appeal will be heard in the United States District Court where the bankruptcy case was filed.

There are further steps that parties can take after the initial appeal. If one of the parties is not satisfied with the decision of the Bankruptcy Appellate Panel or United States District Courtâs decision on their appeal, they may appeal to the Federal Court of Appeals. If either party is not satisfied with the Federal Court of Appealsâ decision, they may appeal to the United States Supreme Court. The Supreme Court may elect whether or not it hears the case. It is rare for the Supreme Court to hear a bankruptcy case.

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History Of Bankruptcy Proceedings And Courts

Bankruptcy laws have been changing since their beginning in 1800. The Federal Rules of Bankruptcy Procedure were created by the Supreme Court. These rules govern the bankruptcy process.

Business and consumer bankruptcy laws have a long history with:

The Code has been amended numerous times as business and consumer spending changes. The most current laws govern all bankruptcy filings and bankruptcy cases. Each bankruptcy court also has its own local rules, but all bankruptcy courts work similarly.

Bankruptcy Court District Website

Bankruptcy Basics – Part 2: Types of Bankruptcy

Alabama

Alaska

  • District of Alaska: Includes court calendar, decisions, local rules, general orders, reference manual, national forms, and more.

Arizona

  • District of Arizona: Includes local rules, electronic filing information, and other court information.

Arkansas

California

Colorado

Connecticut

  • District of Connecticut: Features court locations, phone directory, local rules, and access to public information through PACER for a fee.

Puerto Rico

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History Of The Bankruptcy Courts

  • 2005: Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 passed. It revised how individuals file for personal bankruptcy.
  • 1994: Bankruptcy Reform Act of 1994 created to improve efficiency in bankruptcy proceedings.
  • 1984: Bankruptcy Amendment Act of 1984 reduced authority of bankruptcy courts, following a 1983 ruling by the Supreme Court of the United States. This act changed the method of appointment and clarified the position of bankruptcy judges.
  • 1980: Bankruptcy Tax Act of 1980 created to cover tax-related issues left out of 1978 Act.
  • 1978: Bankruptcy Reform Act of 1978 created. This law still serves as the governing legislation for the U.S. bankruptcy courts.
  • 1973: Position of bankruptcy judge was created.
  • 1946: Referees receive fixed salary.
  • 1938: The Chandler Act of 1938 was created in response to Great Depression. It also enhanced role of referees.
  • 1898: Bankruptcy Act of 1898 created. It established “referees” to act as administrator in bankruptcy cases.
  • 1878: Law repealed by Congress.
  • 1867: Third bankruptcy law created in aftermath of Civil War. This was the first law to include protection for corporations.
  • 1843: Law repealed by Congress.
  • 1841: Second bankruptcy law created in response to the Panic of 1837.
  • 1803: Law repealed by Congress.
  • 1800: First bankruptcy law created as a result of land speculation.

State Laws And The Federal Constitution

Federal courts may hear cases concerning state laws if the issue is whether the state law violates the federal Constitution. Suppose a state law forbids slaughtering animals outside of certain limited areas. A neighborhood association brings a case in state court against a defendant who sacrifices goats in his backyard. When the court issues an order forbidding the defendant from further sacrifices, the defendant challenges the state law in federal court as an unconstitutional infringement of his religious freedom.

Some kinds of conduct are illegal under both federal and state laws. For example, federal laws prohibit employment discrimination, and the states have added their own laws which also forbid employment discrimination. A person can go to federal or state court to bring a case under the federal law or both the federal and state laws. A state-law-only case can be brought only in state court.

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Jurisdiction Of State And Federal Courts

The differences between federal and state courts are defined mainly by jurisdiction. Jurisdiction refers to the kinds of cases a court is authorized to hear.

State courts have broad jurisdiction, so the cases individual citizens are most likely to be involved in — such as robberies, traffic violations, broken contracts, and family disputes — are usually tried in state courts. The only cases state courts are not allowed to hear are lawsuits against the United States and those involving certain specific federal laws: criminal, antitrust, bankruptcy, patent, copyright, and some maritime cases.

Federal court jurisdiction, by contrast, is limited to the types of cases listed in the Constitution and specifically provided for by Congress. For the most part, federal courts only hear:

  • Cases in which the United States is a party;
  • Cases involving violations of the U.S. Constitution or federal laws ;
  • Cases between citizens of different states if the amount in controversy exceeds $75,000 ; and
  • Bankruptcy, copyright, patent, and maritime law cases.

In some cases, both federal and state courts have jurisdiction. This allows parties to choose whether to go to state court or to federal court.

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What Is the Bankruptcy Court?

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What Is Bankruptcy Court

U.S. bankruptcy court refers to specialized federal courtrooms in the United States. The federal government created bankruptcy courts to settle all types of personal and corporate bankruptcy cases.

Unlike the federal court, which the U.S. Constitution established in 1781, the bankruptcy court system did not exist until 1978, when Congress established it as part of the Bankruptcy Reform Act. The U.S. Bankruptcy Code has been amended numerous times since then.

Social And Economic Factors

In 2008, there were 1,117,771 bankruptcy filings in the United States courts. Of those, 744,424 were chapter 7 bankruptcies, while 362,762 were chapter 13. Apart from social and economic factors such as education and income, there is often also a correlation between race and bankruptcy outcome. For example, for personal bankruptcy claims, minority debtors had an approximately 40% decreased chance of receiving a discharge in Chapter 13 bankruptcy. These racial disparities are aggravated by the fact that many minority debtors lack appropriate attorney representation.

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Personal bankruptcies may be caused by a number of factors. In 2008, over 96% of all bankruptcy filings were non-business filings, and of those, approximately two-thirds were chapter 7 cases.

Although the individual causes of bankruptcy are complex and multifaceted, the majority of personal bankruptcies involve substantial medical bills.Personal bankruptcies are typically filed under Chapter 7 or Chapter 13. Personal Chapter 11 bankruptcies are relatively rare.The American Journal of Medicine says over 3 out of 5 personal bankruptcies are due to medical debt.

There were 175,146 individual bankruptcies filed in the United States during the first quarter of 2020. Some 66.5 percent were directly tied to medical issues. Critical illness insurance Association report June 2, 2020

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How Does Bankruptcy Court Work

The bankruptcy court hears both voluntary and involuntary bankruptcy court cases. Depending on the type of bankruptcy the debtor has filed, the bankruptcy court may serve merely an administrative purpose, with the filer, their creditors, and the case trustee moving the case along. The filerâs discharge is an order from the bankruptcy court. If a dispute arises in the case, either between the filer and the trustee or involving another party, the bankruptcy court hears the dispute and makes rulings. Oftentimes, this is accomplished through a âcontested matterâ handled as part of the administrative bankruptcy proceeding.

Certain actions the trustee, a creditor, or other interested party may wish to take require the filing of a complaint and a separate lawsuit. This separate lawsuit is called an adversary proceeding. There are some common scenarios when an adversary proceeding would take place. For example, a filer may transfer money to someone, a friend or family member, before filing for bankruptcy so that money is not subject to the bankruptcy. The trustee can sue that family member or friend to get the money back and distribute it to the filerâs creditors. Another instance in which an adversary proceeding would be commenced is when a creditor took funds from a filer towards payment of a debt when the creditor knew that he had been stopped from collecting when the bankruptcy case was filed. In that case, the filer can bring the lawsuit against the creditor.

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