The Bankruptcy Code
The bankruptcy code is structured into eight chapters, including seven different odd-numbered chapters and one even numbered chapter. Chapters 1, 3, and 5 explains the rules for the administration of a bankruptcy case, define the assets and liabilities of a bankruptcy estate, and describe the trustee's duties.
Chapters 7, 9, 11, 12, and 13 define the type of relief available to a debtor under federal bankruptcy law. Chapter 15 was recently added to the Bankruptcy Code by the 2005 Bankruptcy Code Abuse Prevention and Consumer Protection Act (BAPCPA).
As the predecessor to 11 U.S.C.A. § 304, Chapter 15 establishes the rules for cross-border insolvency cases and incorporates the Model Law on Cross-Border Insolvency.
Although bankruptcy cases are decided in bankruptcy court, the term "bankrupt" is no longer used in the current Bankruptcy Code. Instead of being called "bankrupt" the voluntary petitioner is referred to as the "debtor" throughout the Bankruptcy Code.
The bankruptcy code establishes five different types of bankruptcy cases:
- Chapter 7 is often called the "straight bankruptcy" which deals with the liquidation of the debtor's estate;
- Chapter 9 deals the adjustment of debts of a municipality;
- Chapter 11 concerns business reorganizations;
- Chapter 12 concerns the adjustment of debts for family farmers; and
- Chapter 13 concerns debt adjustments for debtors with a regular source of income;
Attorney for the Bankruptcy Code in Dallas, TX
Nick Inman and Linda Littlefield of Littlefield Law Firm can help you understand how the rules of the Bankruptcy Code might apply to a consumer bankruptcy or a small business bankruptcy in Dallas, TX. The bankruptcy attorneys at Littlefield Law Firm represent clients considering different forms of bankruptcy filed under Chapter 7 and Chapter 13 bankruptcy.
The Dallas, Texas attorneys at Littlefield Law Firm can help you adhere to all of the applicable clerk's office and court-imposed deadlines, the court's local rules and procedures, and the requirements of the bankruptcy code. Our experienced attorneys are familiar with the United States Bankruptcy Code, the Federal Rules of Bankruptcy Procedure and the Local Rules of the court where your case may be filed.
We represent clients in bankruptcy court throughout the greater Dallas-Fort Worth area including in the Northern District of Texas at the Earle Cabell Federal Building in Dallas and the Eldon B. Mahon U.S. Courthouse in Fort Worth. We also represent clients in the US Bankruptcy Court for the Eastern District of Texas in Plano, TX.
At Littlefield Law Firm, our bankruptcy attorneys with offices in Dallas, TX, represent clients throughout Dallas County, Collin County, Kaufman County, and Rockwall County.
Call (972) 812-0900 to discuss your case.
History of the Bankruptcy Code
The first uniform system of bankruptcy administration in the United States was established by the Bankruptcy Reform Act of 1898. The Act created the first system to administer a bankruptcy proceeding in the United States. Over the years, the Act was amended several times.
The first major change came with the passage of the Chandler Act of 1938 that created the “fresh start doctrine.” For the next forty years, the laws regarding bankruptcy proceedings remained virtually unchanged.
The Bankruptcy Reform Act of 1978, found at 11 U.S.C.A. §§ 101 et seq., created the most extensive revision of bankruptcy laws in more than 40 years. The Bankruptcy Reform Act is often called "the Code." The Bankruptcy Code benefits the consumer by creating laws and procedures that changed, applied to limitations on the reaffirmation of discharged debts and adjustment of debts, stay of collection efforts, redemption powers, avoidance of liens, and available exemptions.
The next set of significant changes to bankruptcy laws in the United States came with the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.
The Bankruptcy Code's Automatic Stay
When you file a petition for bankruptcy under the Bankruptcy Code, the filing results in an "automatic stay" against debt collection activities and lien enforcement as provided in 11 U.S.C.A. § 362(a).
The stay is an injunction that prevents any third party from taking any action to create, to perfect, or enforce a lien against the debtor's property and property of the bankruptcy estate under § 362(a)(4)-(5).
This article was last updated on Friday, February 16, 2018.