Basic Bankruptcy Process

The procedural aspects of the bankruptcy process are governed by the Federal Rules of Bankruptcy Procedure (often called the "Bankruptcy Rules") and local rules of each bankruptcy court. The Bankruptcy Rules contain a set of official forms for use in bankruptcy cases. The Bankruptcy Code and Bankruptcy Rules (and local rules) set forth the formal legal procedures for dealing with the debt problems of individuals and businesses.

Each state has one or more districts, and there are 90 bankruptcy process districts all across the whole country, with each of the bankruptcy courts generally having its own Clerk's offices.

The court official with decision-making power over federal bankruptcy process cases is the United States bankruptcy judge; he or she is the judicial officer who presides over the given United States district court. The bankruptcy judge may decide any matter connected with a bankruptcy case, such as eligibility to file or whether a debtor should receive a discharge of debts. In cases under chapters 7, 12, or 13, and sometimes in chapter 11 cases, this administrative process is carried out by a trustee who is appointed to oversee the case. There is a bankruptcy court for each judicial district in the country. There are 90 bankruptcy districts across the country. The bankruptcy courts generally have their own clerk's offices.

Under the bankruptcy process, a debtor's involvement with the bankruptcy judge is usually very limited. A debtor's involvement with the bankruptcy judge is usually very limited. A typical chapter 7 debtor will not appear in court and will not see the bankruptcy judge unless an objection is raised in the case. A chapter 13 debtor may only have to appear before the bankruptcy judge at a plan confirmation hearing. This meeting is informally called a "341 meeting" because section 341 of the Bankruptcy Code requires that the debtor attend this meeting so that creditors can question the debtor about debts and property.