Bankruptcy law is the governing laws that say what happens in the bankruptcy process, who can file what type of bankruptcy and every other detail involved in filing bankruptcy.

1. Bankruptcy Law - An Outline
Bankruptcy law is the governing laws that say what happens in the bankruptcy process, who
can file what type of bankruptcy and every other detail involved in filing bankruptcy. It is
important that you are serious when filing bankruptcy and that you make sure your completely
understand the process.
An Establishment of Bankruptcy Law
The United Bankruptcy Code is the law that regulates and establishes bankruptcy. This is a
federal law and bankruptcy is held in federal bankruptcy courts. Federal bankruptcy judges hear
bankruptcy cases.
States get involved on some level with the process. Each state has one or more bankruptcy
courts to hear resident cases. Additionally, exemptions are established under federal law, but
states also have exemptions that can be chosen instead of the federal exemptions.
Variations of Bankruptcy Law
There are many variances in the bankruptcy laws that can be confusing. Here are some top
things you should know about:
Exemptions - Exemptions are assets that are protected. You will have a federal list and a state
list. You have to choose one or the other. The idea is to go with the one that protects the most
of your assets.
Different types of bankruptcy - There are many different types of bankruptcy. Individuals
usually either file Chapter 7 or Chapter 13. In any case it is important to understand the
difference. You also have to make sure that you qualify for the chosen type under the new laws.
The New Bankruptcy Laws
New laws were designed to help reduce the number of bankruptcies being filed and to help
prevent abuse of the system. These new laws made several changes.
One of the best known changes is the new requirement of credit counseling. This is done two
times during the process. The first time is to help a person make sure they should file
bankruptcy and that an alternative is not a better solution. The second session helps the person
to be a better consumer and learn about being responsible with credit.
Another major change is the limitation on who can file Chapter 7. This limitation makes a
Chapter 7 based on income. Those making too much have to file a Chapter 13.