Historical Background on Bankruptcy
One of the benefits of working with a competent bankruptcy attorney is that they have knowledge of the United States Bankruptcy Code (title 11, United States Code) and the Federal Rules of Bankruptcy Procedure and how it will apply to your situation. Bankruptcy attorneys have an understanding of how bankruptcy was created and how it continues to evolve.
The laws are always changing. The United States Constitution, Article I, Section 8, allows Congress to establish
“uniform Laws on the subject of Bankruptcies.” In 1978 Congress enacted the “Bankruptcy Code”. The word code generally means the law regarding the subject of bankruptcy. The Bankruptcy Code, was codified and added into the federal as title 11 of the United States Code. Title 11 is the collection of federal law that controls all bankruptcy cases. Of course, the law is never the same and is always evolving and adapting. As such, the bankruptcy code has been amended since it was first enacted.
To regulate people who pursue bankruptcy the Federal Rules of Bankruptcy Procedure (FRBP) or bankruptcy rules have been written that sets forth the official forms that must be used, time frames, and dates that must be followed. Those that file bankruptcy are referred to as debtors. Also, the United States federal judicial court system is divided into different districts with their respective courts. In each state there is at least one federal district. Larger states, like California have four federal districts to divide up the caseload. The local courts can have their own set of “local rules” as well and a “court clerk” to process the paperwork being filed. Clerks cannot give legal advice.
A bankruptcy judge is assigned to each case and they are the decision maker who applies and interprets the law as needed. In many bankruptcy cases the process is mostly administrative meaning that the person or business filing bankruptcy moves through the bankruptcy process without dispute interacting primarily with just the assigned “bankruptcy trustee”. Surprisingly, it is very common that a person filing bankruptcy a chapter 7 case will never appear before a judge or be in a courtroom and in a chapter 13 case may only appear once for a payment plan confirmation hearing.
The end goal for all of the code, procedures, rules, trustees, and judges, is to help facilitate the fair and uniform application of a debtor obtaining a “discharge”. Allowing debtors to obtain relief from their debt is part of the law and equity built into the United States justice system and a right as a United States citizen.
The Law Office of Michael Johnson is a general practice law firm with an emphasis on bankruptcy, debt settlement, and IRS and state back tax resolution. We serve clients throughout Elk Grove, Sacramento, Roseville, Folsom, and Northern California. For more information or to schedule a consultation, please contact us at (916) 350-4829 or visit our website at www.MichaelJohnsonLaw.com.
The information on in this post and on the website is for general information purposes and is not to be relied on for one’s specific matter and does not constitute an attorney client relationship.