Even though most people don't consider themselves at a financial risk for bankruptcy, the sad statistics are that today more and more people are heading that direction. In fact, the various forms of bankruptcy such as chapter 7, chapter 13, and even chapter 11 are becoming a more popular financial out for people and businesses each and every day.
The U.S. bankruptcy laws were put in place by Congress in order to provide uniformity to the code and statutes throughout the United States. The bankruptcy laws were actually put in place to protect people from doing further financial harm.
Currently there are four different sections or chapters to the bankruptcy statutes. For instance, you'll probably recognize such bankruptcy terminology as chapter 11... which is the section of bankruptcy code that can be found in chapter 11 of the statute.
The different bankruptcy chapters such as the ones mentioned above are the details to the various statutes of the bankruptcy codes (such as chapter 7). Each of the various chapters have their own particular nuances as to how the financial burden is relieved and what procedures must be followed in order for that debt to be relieved. In addition there are also stipulations and regulations set forth that the involved creditors must abide by.
Even though there are Federal bankruptcy statutes that each state must follow, each state can still pass its own laws concerning the execution of the bankruptcy proceedings. This as long as these local state laws still fit within the framework of the Federal. In other words, states have the power to establish law concerning bankruptcy but not complete autonomy in doing so.
Even though the individual states can't alter the basic intent of the federal bankruptcy laws, the do have the right to interpret how the claims should be filed and how they are acted upon by the individual states themselves.
Just like most any statute, the bankruptcy codes are dynamic and subject to change. This is why it is imperative that an individual seeks the counsel of a professional bankruptcy attorney.
Any change to the base bankruptcy laws of the U.S. will be originated from Congress itself. An example of such came with the filing requirements of a Chapter 7 bankruptcy. This particular changed effected the primary rules for the filing in that it added additional burden of proof on the person filing to have met the specific criteria and as such would have the right to file for bankruptcy.
Because of the influx of people entering the bankruptcy system, this type of change to the core bankruptcy statutes was put in place. Now, across all states, if someone is seeking bankruptcy protection under the law; they are required to complete a court appointed financial and bankruptcy counseling session. This was done to help protect the system and creditors from those who just wanted not to pay off their debts.
http://www.articlefrenzy.com/Article/Bankruptcy-Codes-And-You/108390
