Easy Guide to Understanding Chapter 7 Governing Laws
To list all of the Chapter 7 bankruptcy laws in the United States would be a decidedly difficult task. With all of the exceptions to the rule and the different provisions that exist for individuals versus partnerships and companies, Chapter 7 bankruptcy law is decidedly complex. In light of this, while virtually all Chapter 7 bankruptcy laws have a time and place when they are relevant, some are imaginably more relevant more often than others.
As with other forms of codified provisions, American Chapter 7 bankruptcy law is a melange of statutes at the Federal and State level. Moreover, it is a blend of more established Chapter 7 bankruptcy laws and newer amendments to the policies on record. The following are notes on some of the more prominent applications of Chapter 7 bankruptcy law:
On the national level, Chapter 7 bankruptcy laws, as binding pieces of legislation, are determined by the legislative branch of the United States government. Chapter 7 bankruptcy law realistically is only a subset of all bankruptcy law in this country contained in Title 11 of the United States Code, a collection of the permanent statutes affecting the nation. The Code itself contains 50 titles in total and is maintained by joint efforts of the Office of the Federal Register, the National Archives and Records Administration, and the Office of the Law Revision Counsel.
Chapter 7 bankruptcy laws vary from state to state, especially concerning the standards by which exempt properties may be named. They also vary from court to court by how they may be interpreted. Federal Chapter 7 bankruptcy law, though, specifically addresses who is not eligible to apply for this form of relief according to the Code's legal language. In particular, repeat applications for debt relief through Chapter 7 bankrupt proceedings are generally discouraged within six months of one another, especially if the petitioning party failed to appear before a bankruptcy court as requested.
Significant changes to Chapter 7 bankruptcy law have been enacted fairly recently, as can be seen in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.
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