San Diego Bankruptcy: Bankruptcy is a Federal Action
Just like the federal portion of your taxes (think IRS), bankruptcy is a federal matter. However, you also pay state taxes. Bankruptcy is much like this. You should think of bankruptcy as the domain of the government of the United States of America, not uniquely California. The people that make and change the laws regarding bankruptcy are Senators and members of the House of Representatives. They live in Washington D.C., not Sacramento. Challenges to the bankruptcy code are heard in federal court, not the local municipal variety where you may pay your traffic ticket. Fraud and other crime related to bankruptcy are investigated by the Federal Bureau of Investigation, not the local Sheriff. The state-specific issues are very important. They deal mostly with issues such as domicile [LINK] and exemptions [LINK]; they play a major role in determining which federal office you are allowed to file in and what property you can expect to keep. Ultimately, though, as a starting point, you should view bankruptcy as a federal issue, the laws are the same from Alaska to Hawaii to Florida to Maine.
Specifically, the bankruptcy laws are codified within Title 11 of the United States Code. The Chapter number is linked to the type of relief sought. Thus, a Chapter 7 bankruptcy is found within Title 11, Chapter 7; and a Chapter 13 bankruptcy within Title 11, Chapter 13. This makes it easy when reviewing law to figure out what type of bankruptcy is being discussed. Section 707, for instance, deals with a Chapter 7 bankruptcy; and Section 1322 relates to Chapter 13s. The Code itself is available online at http://uscode.house.gov/search/criteria.shtml.
Historically, federal bankruptcy jurisdiction originated first in 1800 when federal district court judges were authorized to appoint commissioners to oversee the discharge of debt. In 1841, Congress granted broad authority to the courts to handle bankruptcy proceedings. The 1898 Bankruptcy Act detailed specific bankruptcy powers and stood as the law on bankruptcy within the United States for 80 years until the Bankruptcy Reform Act of 1978. Another change was made in 1984 and then again, in 2005, with the Bankruptcy Abuse and Consumer Protection Act.
Specifically, the bankruptcy laws are codified within Title 11 of the United States Code. The Chapter number is linked to the type of relief sought. Thus, a Chapter 7 bankruptcy is found within Title 11, Chapter 7; and a Chapter 13 bankruptcy within Title 11, Chapter 13. This makes it easy when reviewing law to figure out what type of bankruptcy is being discussed. Section 707, for instance, deals with a Chapter 7 bankruptcy; and Section 1322 relates to Chapter 13s. The Code itself is available online at http://uscode.house.gov/search/criteria.shtml.
Historically, federal bankruptcy jurisdiction originated first in 1800 when federal district court judges were authorized to appoint commissioners to oversee the discharge of debt. In 1841, Congress granted broad authority to the courts to handle bankruptcy proceedings. The 1898 Bankruptcy Act detailed specific bankruptcy powers and stood as the law on bankruptcy within the United States for 80 years until the Bankruptcy Reform Act of 1978. Another change was made in 1984 and then again, in 2005, with the Bankruptcy Abuse and Consumer Protection Act.
