Bankruptcy is handled under federal law in America. It was the United State Constitution that gave Congress the ability to enact legislation about bankruptcy and it has done so several times over the past 200 plus years. The last time Congress passed legislation about bankruptcy was in 1978 when they passed the Bankruptcy Reform Act.
The Wikipedia page on bankruptcy in America, at ths link, states that all bankruptcy cases are dealt with in United States Bankruptcy Courts. In addition to federal laws regarding bankruptcy, there are also some state laws in place that handled how the property rights of the debtors are dealt with. It is because of state laws that bankruptcy cases can be handled differently from state to state.
There are a few different chapters of bankruptcy. A Chapter 7 bankruptcy, which is the most common, involves a trustee who collects everything that is non-exempt from the bankrupt person and distributes it to their debtors. The person is then completely out of debt.
A Chapter 9 bankruptcy is only available to cities and it reorganizes their debt rather than eliminating it. Chapters 11, 12, and 13 bankruptcies allow an entity to reorganize their debts, keep exempt property, and enter a plan to repay their creditors. Chapter 15 bankruptcies are for foreign companies that owe debts in the United States.
For individuals, a Chapter 11 bankruptcy stays on their credit reports for seven years. If they are able to do a Chapter 7 bankruptcy than this is reported on their credit history for 10 years. While many people feel they won’t qualify for credit after a bankruptcy this isn’t actually the case. A person can start rebuilding their credit the day of the bankruptcy and can start rebuilding their credit score using secured credit cards at first and then regular cards within a year.
For people who want to pursue a career as a bankruptcy attorney, there is an article that describes the top 10 things you should know. Their advice holds whether you want to work in a bankruptcy law firm Pelham AL or in another state as the article is not state-specific. The first thing to know is that there is no typical day as each case involves a completely different set of circumstances.
People start out in the bankruptcy legal industry as a junior associate. They work with either senior associates in a big law firm or with a partner in smaller ones. Once a person has garnered enough experience they will start working directly with clients and those they owe a debt to. They can also work with accountants and financial advisors when representing a client.
Working as a bankruptcy attorney is a fast-paced career. Most cases go through the court system at a rapid pace. The cases of even major corporations can be resolved in just months. At the first court date, the debtors may file a number of motions. These are all heard by the judge after just two weeks. This fast pace means the bankruptcy attorneys need to work rapidly and make some sacrifices in order to meet the needs of their clients.