Title 11 of the U.S. Code, as published by the Legal Information Institute, concerns bankruptcy proceedings, and it includes Chapters 1, 3, 5, 7, 9, 11, 12, 13 and 15. As of July 2015, there is no Chapter 10 of the portion of the U.S. Code that pertains to bankruptcy.Continue Reading
As outlined by the U.S. federal court system, filing for bankruptcy is a means by which individuals who are no longer able to pay their debts can liquidate their assets or create a repayment plan. Corporations may also file for bankruptcy if they are experiencing financial problems. Title 11 of the U.S. Code, as it appears on the Legal Information Institute, outlines the laws governing to bankruptcy. Chapters 7 and 13 of Title 11 deal with individuals filing bankruptcy, and under Chapter 7, an individual's assets are liquidated and given to the individual's creditors. Under Chapter 13, individuals with regular income may adjust their debt load while keeping their property by agreeing to a repayment plan that typically ranges from three to five years in length.
Chapter 9 of Title 11, as published by the Legal Information Institute, provides a way for municipalities to adjust their debt load and reorganize. Corporations can file for bankruptcy under Chapter 7 if they seek asset liquidation or under Chapter 11 if they need to reorganize. Chapter 12 provides bankruptcy protections for farmers and fishermen, and Chapter 15 governs bankruptcy filings involving parties of different countries. All bankruptcy proceedings are handled by the federal court system.Learn more about US Government