The United states congress controls the bankruptcy code of the USA. Congress gets its power from the united states constitution, article 1, section 8 clause 4. This article basically states that the congress is given the power to enforce laws in regard of bankruptcies all over the united states.
The congress has lived up to its responsibilities over the last 206 years. In 1978 congress made huge changes and they enacted a new act known as the bankruptcy reform act.
The bancruptcy code was again changed in 2005, this is when the president added a new law "The bankruptcy absue prevention and consumer protection act". These changes can be found documented in title 11 of the USC.
Title 11 is the main location for all of the laws that regulate debt resolution, in particular bankruptcy. There are other parts of the USC that are of interest to this subject too.
There are a few examples 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)
These are what the constitution says about bankruptcy, however it is likely that the individual state laws will also have some affect upon this.
The federal and state laws regarding bankruptcy are very different:
1. Create the Estate: When the process of filing for bankruptcy begins an 'estate is created. The estate contains all of the assets of the debtor, however certain possesions are exempt.
2. Federal Income Tax purposes: The assets of the estate are seoerate when the person is filing for chapter 7 and chapter 11 bankruptcy. The assets of the estate of an individual who is in chapter 12 or 13 bankruptcy are not seperate from that of the debter
3. Trustee of the United States
4. Certain Exempt property.
5. Other Entities that cannot be debtors, eg companies.
6. Bibliography.
7. Benefits of certain pension plan liabilities in debt resolution.
8. Debt Repudiation Court.
There are many different features in the bancruptcy code, you must seek legal advice before changing anything with regards to your debt, this advice is just a piece of friendly advice.
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.
You can also find more information at Avoid Bankruptcy and Bankruptcy Alternative. Filingpersonalbankruptcyhelp.com is a comprehensive resource to get help in Bankruptcy.
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