The Codes Associated with Bankruptcy
The United States congress has set up a code for bankruptcy under the Constitution. Article 1, Section 8, Clause 4 gives them control to determine laws that relate to the issue of bankruptcy.
The rules and regulations have continually changed over the years starting with the Bankruptcy Reform Act of 1978. The most recent changes took place in 2005 under the direction of George W. Bush who signed the Bankruptcy Abuse Prevention and Consumer Protection Act. The information relating to the changes brought on by this act can be found in Title 11.
This is the primary location for all of the statues of law in regard to the laws governing debt resolution. Other parts of it contain laws about repudiation of debt. Authority and jurisdiction are taken care of in the courts under Title 28. Title 18 involves criminal violations and crimes pertaining to debt repudiation.
There are tax ramifications involved in Title 26. There are many different features involved in Federal and state debt repudiation. When it comes to an estate all of the assets of the debtor have to be listed. Exceptions are made so that certain assets can not be taken by the creditor.
For Federal income tax purposes the estate assets are separated when an individual files for either Chapter 7 or Chapter 11 bankruptcy. If Chapter 12 or Chapter 13 are filed then they are not separated. Since there are so many different bankruptcy codes to be aware of you should seek the legal advice of a professional in this area.