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Filing Bankruptcy in Federal Courts
By
Eddie Tobey
One cannot file
for bankruptcy through US state courts,
since exclusive jurisdiction is vested with
Federal courts. The court charges a certain
fee at the time of filing, depending on
which category of bankruptcy is being filed
for. Specifically, a court fee for filing
for Chapter 7 bankruptcy is $274, $1,039 for
Chapter 11, $239 for Chapter 12 and $139 for
Chapter 13. The charges vary for single
individuals and married couples and can be
paid in installments over a period of 120
days.
The Federal Rules of Bankruptcy Procedure
has a formal procedure for filing, which is
further specific to the bankruptcy laws of
each judicial district. The US has 90 formal
districts in which bankruptcy can be filed
for, and the overall power over these is
vested with the United States bankruptcy
judge. Someone filing for Chapter 7
bankruptcy will usually have no direct
dealings with a judge, while someone filing
for Chapter 13 bankruptcy will appear before
a judge at the official plan confirmation.
The applicant will, however, attend the 341
meeting (so called because it is required by
section 341 of the Bankruptcy Code). In this
meeting, the person applying for bankruptcy
meets with all creditors involved and
answers questions pertaining to assets,
property, etc.
The form that needs to be filled out for
filing bankruptcy encompasses something like
20 pages. It is this extensive because the
applicant needs to provide the court with
complete information regarding income and
expenses, assets and liabilities and all
financial transactions in the immediate
past. The form is available with most legal
stationers and costs around $20.
The bankruptcy petition must be filed in the
applicable district’s local bankruptcy
court, along with documentation pertaining
to previous applications for bankruptcy.
Conclusion
Are you one
of the many that suffer from insurmountable
debt and wonder if bankruptcy is an option?
Give us a call at (203) 924-6700 or
contact us.
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