Becoming bankrupt is not
something that many people think about. There are occasions
when this will happen and these individuals will need to file
for bankruptcy. The various chapters of bankruptcy like chapter
13, and chapter 11 are taken from the bankruptcy code. This
code was established by the US congress.
These laws were put in place
so that there was a uniform law about bankruptcy that could be
found throughout the US. These laws from the bankruptcy code
are designed to protect the person who is in debt from further
There are currently four main
types of bankruptcy laws that are taken from the bankruptcy
code. You will recognize these bankruptcy laws as chapters.
Chapter 11 is one of the bankruptcy laws that can be found in
the bankruptcy code under the heading chapter
The different chapters within
the bankruptcy code provide information for people who are in
debt. The various ways that the law can work to keep you safe
from undue hassles can be found within the pages of the
bankruptcy code chapters.
While the US government has
provided the framework for these laws of the bankruptcy code
each state has the right to pass other laws that will work in
accordance with the bankruptcy code.
The states can only provide
other laws that are compatible with their state’s laws.
Otherwise the states themselves don’t have the power to govern
how the bankruptcy code works.
There are many different and
new laws that you can find when you look through the bankruptcy
code. One of the new laws that you will find is the altered
state of the debtor-creditor relationship.
While the different states
can’t alter the basic rules of the bankruptcy code they do have
the right to interpret how these bankruptcy claims are filed
and acted on in their respective states.
If there is a major change to
the bankruptcy code this change will be passed by congress. One
such change that has taken effect alters the rules of
bankruptcy for chapter 7. In this part of the bankruptcy code
all debtors must prove that they have the right to file for
They will be allowed to file
for bankruptcy only if these people have fulfilled a counseling
session. This step has been taken to ensure that the bankruptcy
code is not being misused by the various individuals who want
to avoid paying their various debts. As the bankruptcy code has
been placed for our protection it is best if you treat these
laws with respect.