What is the U.S. Bankruptcy Code?

The U.S. Bankruptcy Code is a federal law that governs the bankruptcy process in the United States. It sets out the different types of bankruptcy that can be declared and the procedures that must be followed when filing for bankruptcy. The Code also establishes the rights of creditors and debtors in a bankruptcy situation. In Texas, the Code is contained in Title 11 of the United States Code. Under this law, individuals can file for Chapter 7 or Chapter 13 bankruptcy. Chapter 7 is a liquidation bankruptcy where the debtor’s non-exempt assets are sold and used to pay creditors. Chapter 13 is a reorganization bankruptcy where the debtor is allowed to keep some of their assets and is given an affordable repayment plan. The U.S. Bankruptcy Code also provides protection from debt collection. If a debtor has declared bankruptcy, creditors cannot contact them or take legal action in an attempt to collect debt. This law also establishes exemptions that debtors can use to protect their property from creditors. The U.S. Bankruptcy Code is an important law that provides individuals with a way to get out of debt and rebuild their finances. It is important for anyone considering bankruptcy to understand the law and the different options available to them.

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What is the U.S. Bankruptcy Code?

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