In a nutshell, bankruptcy cases are voluntary or involuntary. The vast majority of cases will be voluntary. In these, debtors (the people who owe money) petition the bankruptcy court. With involuntary bankruptcy creditors (the people who you money to) file the petition in bankruptcy. Involuntary petitions are typically rare and are sometimes used in business situations in order to force a company into bankruptcy so the creditors can enforce their rights.

The start of a bankruptcy case begins with an estate. An estate is what the creditors scope out to see if there is anything they want. The estate is comprised of all of the debtor’s property interests at the time of the commencement. Not all property will be up for grabs, however. Some of it is subject to certain exclusions and exemptions.

If you are married, the estate might include particular community property interests of your wife or husband, even if your wife or husband has not filed bankruptcy. The estate might contain additional items including property acquired by will or inheritance within one hundred and eighty days after the the commencement of the case.

For the purpose of federal income taxes, the bankruptcy estate of someone in a Chapter 7 or 11 case is an entity that can be separately taxed from the debtor. The bankruptcy estate of a corporation, partnership or other collective entity or estates of individuals filing for Chapters 12 or 13 is not a separate taxable entity.

Bankruptcy judges in each judicial district make up a unit of the United States District Court. The judge will be appointed for a term of fourteen years by the United States Court Of Appeals. The District Courts have subject matter jurisdiction over bankruptcy matters. But each district may refer bankruptcy matters to the Bankruptcy Court. Most district courts have an order so that all bankruptcy cases are handles by the Bankruptcy Court.

Mallory McGuinness works for a debt collection company. Also she writes pieces about finance and business, consumer spending and collection agencies. Get a totally unique version of this article from our article submission service

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