Bankruptcy Code - What You Need to Know About the Bankruptcy Code

Avoid Bankruptcy Alternatives Bankruptcy Attorney Bankruptcy Code Bankruptcy Court Exemptions Chapter 11 Filing Bankruptcy Personal Bankruptcy Student Loan Bankruptcy Disclaimer

Bankruptcy Code

The bankruptcy code of the United states of America is controlled by the United States Congress. Congress derives its control from the United States Constitution, Article 1, Section 8, Clause 4. Article 1 states in part that the United States Congress is empowered to administer "uniform Laws on the subject of Bankruptcies throughout the United States.".

The United States Congress has seen fit to exercise its inherent right to change the insolvency canon several times over the last 206 years. In 1978 congress made sweeping changes to the insolvency canons when they enacted the "Bankruptcy Reform Act". The latest major amendments came about in 2005, when President George W. Bush, signed into law the "Bankruptcy Abuse Prevention and Consumer Protection Act". Codification of these changes will be found in Title 11 of the USC.

Title 11 of the USC is the primary repository for the statues of law that govern debt resolution. However, other parts of the USC contains other laws that pertain to the repudiation of debt.

A few examples are outlined below:

1. Authority and jurisdiction of the insolvency courts: Title 28 of the USC.

2. Criminal violations and other crimes that pertain to debt repudiation : Title 18 of the USC.

3. Tax ramifications when filing for debt insolvency: Title 26 of the USC (IRS)

Although those examples above are federal statutes that apply to debt repudiation it is very likely that individual state statutes will also apply.

Federal and state debt repudation laws have many different features such as:

1. Estate: When the filing for debt repudiation is begun it creates the 'estate'. The estate will contain the assets of the debtor with exceptions for certain exemptions.

2. Federal Income Tax purposes: The estate assets of the debtor are separate when an individual is in Chapter 7 or Chapter 11. Furthermore the estate assets of an individual who is in Chapters 12 or 13 or not separate from the debtor.

3. United States Trustee.

4. Exempt property.

5. Entities that cannot be debtors.

6. Bibliography.

7. Benefits of certain pension plan liabilities in debt resolution.

8. Debt Repudiation Court.

The bankruptcy code has many additional features and benefits. As always the advise of legal council should be sought in identifying all the features and benefits.