Bankruptcy Filings are Increasing in Federal Court

With a recent economic downturn, bankruptcy filings are increasing. Bankruptcies must be filed in one of the 94 federal bankruptcy courts.

Bankruptcy must be filed in federal court. The United States has 94 federal judicial districts and each one has a bankruptcy court. With the recent downturns in the U.S. economy, more people are seeking relief from their debts through the federal court system. In some areas, the number of bankruptcy filings has increased by as much as 100 percent from 2007.

With an estimated one million people expected to file bankruptcy in the United States in 2008, district courts are going to be busy processing the claims. If you want to find bankruptcy records, you can search federal court records online. An online court records search will tell you when and in what court a bankruptcy was filed. You will be able to contact or visit the court to get a copy of the record.

If you are wondering if someone you know or are about to do business with has filed for bankruptcy, you must search through federal court records. The federal courts recognize several types of bankruptcy:

  • A Chapter 7 bankruptcy is a complete liquidation of the debt. The debtor does not repay any of the money owed. However, the court will sell the debtor’s assets to pay for the debt.
  • Cities that are broke will fill a Chapter 9 bankruptcy.
  • The news has been filled with cases of companies filing Chapter 11 bankruptcies since difficult economic times have hit. These types of bankruptcies involve a reorganization of the debt and not liquidation. Company officials will continue to operate their business as normal while negotiating with the creditors over how to settle the debt. Eventually, the company will agree to a payment plan that is approved by the creditors and the courts. Many companies emerge from this type of bankruptcy and continue to do business.
  • A Chapter 12 bankruptcy involves farmers and fishermen who need help paying their bills.
  • Chapter 13 is one of the most common types of bankruptcies. The debtor keeps all of his or her personal property and agrees to a payment plan. Most often, the payments are deducted from the debto’s wages.
  • If a U.S. citizen or company has international interests, this would involve a Chapter 15 bankruptcy.