Overview
In the United States, bankruptcy is a legal process through the federal courts; there is a bankruptcy court in each federal judicial district in the United States. Bankruptcy law is codified at Title 11 of the United States Code. The Federal Rules of Bankruptcy Procedure and local rules of each bankruptcy court govern the bankruptcy process.
Bankruptcy occurs when people or other entities who cannot repay debts to creditors seek relief from some or all of their debts. A corporation or partnership can petition for bankruptcy relief under Chapters 7 or 11 of the Bankruptcy Code or the business can file a reorganization plan under Chapter 11, which enables the business to stay afloat and pay its creditors over time. The debtor's creditors must approve the filed reorganization plan. Once the reorganization plan is complete, the business can emerge from bankruptcy.
Laws, Regulations, and Rules
- United States Constitution, article I, section 8, clause 4The Congress shall have power to . . . establish . . .uniform laws on the subject of bankruptcies throughout the United States.
- Title 11 United States Code. BankruptcyChapter 1—General Provisions (§§ 101–112)
Chapter 3—Case Administration (§§ 301–366)
Chapter 5—Creditors, the Debtor, and the Estate (§§ 501–562)
Chapter 7—Liquidation (§§ 701–784)
Chapter 9—Adjustment of Debts of a Municipality (§§ 901–946)
Chapter 11—Reorganization (§§ 1101–1174)
Chapter 12—Adjustment of Debts of a Family Farmer or Fisherman With Regular Annual Income (§§ 1201–1231)
Chapter 13—Adjustment of Debts of an Individual With Regular Income (§§ 1301–1330)
Chapter 15—Ancillary and Other Cross-Border Cases (§§ 1501–1532) - Federal Rules of Bankruptcy Procedure 2021The Federal Rules of Bankruptcy Procedure govern the processes and procedures that a bankruptcy court follows to carry out the Bankruptcy Code.
Electronic Toolkits & Treatises
Treatises
Courting Failure: How Competition for Big Cases Is Corrupting the Bankruptcy Courts by Call Number: KF1526 .L67ISBN: 0472114867Publication Date: 2005
Debt's Dominion: A History of Bankruptcy Law in America by Call Number: KF1526 .S59ISBN: 0691116377Publication Date: 2001
Study Aids
Bankruptcy and Debtor/Creditor: Examples & Explanations by Call Number: Study Aid KF1524.85 .B58ISBN: 1454883200Publication Date: 2018
Bankruptcy and Other Debtor-Creditor Laws in a Nutshell by Call Number: Main Collection KF1501.Z9 E67 1995ISBN: 0314065377Publication Date: 1995
Black Letter Outline on Bankruptcy and Related Law by Call Number: KF1501.Z9 N53ISBN: 0314065792Publication Date: 2006
Glannon Guide to Bankruptcy by Call Number: Study Aid KF1524.85 .M368 2011ISBN: 9780735507289Publication Date: 2011-05-06
Inside Bankruptcy Law: What Matters and Why by Call Number: Study Aid KF1524.85 .M37ISBN: 0735507538Publication Date: 2011
Questions & Answers: Bankruptcy by Call Number: Study Aid KF1524 .Q84ISBN: 1531002129Publication Date: 2016
Understanding Bankruptcy by Call Number: Study Aid KF1524 .F47ISBN: 0769859208Publication Date: 2013
Law Journals & Newsletters
- American Bankruptcy Institute Law ReviewThe American Bankruptcy Institute Law Review, published twice a year, is among the most respected scholarly publications in the bankruptcy community.
- American Bankruptcy Law JournalThe American Bankruptcy Law Journal is a peer reviewed journal that publishes learned articles focusing on bankruptcy law and related subjects.
- Emory Bankruptcy Developments Journal (via HeinOnline)Published semi-annually since 1984, the Emory Bankruptcy Developments Journal is the only student-run bankruptcy journal in the United States.
- Mealey's Daily News Update - Bankruptcy (via Lexis+)Timely coverage of developments in litigation arising under the U.S. Bankruptcy Code, both in the consumer and the corporate areas. Among the topics covered: exceptions to the automatic stay, dischargeability, fraudulent transfers, creditors' rights and plans of reorganization.