Bankruptcy court in the US specializes in bankruptcy cases, with most cases being heard and resolved in bankruptcy court. Judges are appointed for 14-year terms, and appeals can be heard by Bankruptcy Appeals Boards. The process is prescribed by law, and respectful behavior is expected in court.
In the American legal system, a bankruptcy court is a court that specializes in bankruptcy cases. In other legal systems, bankruptcy is usually handled in general court, but in the United States, the vast majority of bankruptcies are heard and resolved in bankruptcy court. This is designed to streamline the bankruptcy filing process in the United States and to ensure that the complex bankruptcy code is enforced by experienced judges.
Bankruptcy courts are federal courts, and while bankruptcy cases can theoretically be heard in district courts, many district courts refer these cases to a bankruptcy court. In most cases, the court has a so-called standing order, which means that all bankruptcies go directly to bankruptcy court, without even appearing in a district court. Judges in bankruptcy courts are appointed by the United States Court of Appeals for 14-year terms. Bankruptcy Appeals Boards (BAPs) made up of appointed judges can hear appeals from people who disagree with decisions handed down by a bankruptcy court.
This system was established in 1979 as part of the reworking portion of Title 11 of the United States Code, also known as the Bankruptcy Code. Individuals and businesses wishing to file for bankruptcy must present their case in a bankruptcy court, and if they meet the terms of the Bankruptcy Code, the judge can approve the bankruptcy proceeding. Numerous reforms to Title 11 of the United States Code have made filing for bankruptcy increasingly difficult in the United States, in response to pressure from the financial sector.
Most people have no intention of becoming familiar with the process involved in filing for bankruptcy, and people facing financial ruin tend to turn to an attorney to help them navigate the bankruptcy process. Attorneys can determine which section of the bankruptcy code is relevant to the case and can also represent their clients in bankruptcy court. Some lawyers specialize in this type of work, while others offer a range of financial-related legal services.
Like other courts in the United States, proceedings in bankruptcy court are carefully prescribed by law, and the judicial environment should be as neutral as possible. All individuals present are expected to behave respectfully to the judge and others in the courtroom out of respect for the sanctity of the court. Respectful behavior isn’t limited to the rules of common courtesy—people in court are also expected to dress well and look neat, no matter how tattered their finances are.
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