What is the U.S. Bankruptcy Code?

The U.S. Bankruptcy Code is a federal law that governs the filing of bankruptcy cases and the legal process by which debts are eliminated, reorganized, or paid through assets. It is found in Title 11 of the United States Code. The Bankruptcy Code enables individuals, who are unable to pay their debts, to obtain relief from a court-supervised process. The U.S. Bankruptcy Code aims to protect the interests of creditors and debtors by providing both parties with the opportunity to resolve their debt obligations. This helps to ensure that creditors receive a fair share of payments and debtors receive a fresh start. In Nebraska, individuals seeking to file for bankruptcy must meet the qualifications under the U.S. Bankruptcy Code in order for the case to be accepted. Individuals filing for bankruptcy in Nebraska under the U.S. Bankruptcy Code must adhere to certain requirements in order to qualify. This includes a court-approved means test to determine whether individuals are over the income threshold for filing Chapter 7 or Chapter 13 bankruptcy. The U.S. Bankruptcy Code also requires individuals to complete credit counseling before filing for bankruptcy and to file formal paperwork that outlines their assets, debts, income, and expenses. After filing, individuals must attend a meeting of creditors in which they must answer questions about their financial situation. The U.S. Bankruptcy Code is an important law that helps individuals in Nebraska find relief from their debt. It is a set of laws that provides debtors and creditors with rights and responsibilities to ensure a fair debt resolution process.

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