What is the U.S. Bankruptcy Code?

The U.S. Bankruptcy Code is a body of federal laws that governs the process of filing for bankruptcy in the United States. It is a part of the U.S. Code and is administered by the U.S. Department of Justice. It provides a way for individuals and businesses to reorganize debt and get a fresh financial start. In California, the U.S. Bankruptcy Code is used to define what debts are dischargeable, what assets are protected, and which rules and procedures a debtor must follow to receive a discharge. Generally, the Bankruptcy Code divides debt into categories and sets out a timeline for the repayment of debts. In order to successfully pursue bankruptcy, a person must meet certain criteria and may need to pass a means test. The U.S. Bankruptcy Code applies to all states, so it is important to be familiar with the laws that govern bankruptcy in California. It is also important for individuals to understand the complexity of filing for bankruptcy and the different options available when it comes to dealing with debt. Understanding the Bankruptcy Code is an important step to take when considering filing for bankruptcy and getting a fresh financial start.

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