Information Regarding Bankruptcy Court
The United States classifies bankruptcy courts as a portion of the Federal Judicial System. Each state however has its own laws and guidelines that are related to bankruptcy regulations for those who live there.
This makes it very confusing for both debtors and creditors involved in such situations and it can be hard to get a fair resolution for either side. To help take care of this issue the Federal government has set up a system designed to have power over the rules and regulations of a given state. Therefore each case involving a petition for bankruptcy must be filed with the courts under the Constitution of the United States of America.
The United States has 94 judicial districts that cover a specific geographical area of the US, Washington D.C, and Puerto Rico. Federal district judges preside over these legal matters. In most cases bankruptcy is classified as a civil matter but there are a few exceptions.
One such instance is if the debtor or a creditor has been found to be involved in a criminal act that lead to the situation. These cases are handled by the Department of Justice and those responsible will be prosecuted according to the law. There are very few such criminal cases involving bankruptcy though. More than 1,650,000 cases were filed in 2005 alone with almost all of them being assigned to the civil courts.