Purpose

• The Bankruptcy Code "...is the uniform federal law that governs all bankruptcy cases." Congress wrote it "...to give debtors a financial "fresh start"..." from unmanageable debt.
  
  

Elements

• In addition to the Code, there are Federal Rules of Bankruptcy Procedure. These rules contain the official forms to be used in legal proceedings. The Code and the Rules serve as the administrative framework for the overall bankruptcy process.
  
  

History

• The code changed three times in the nineteenth century, including the Acts of 1800 and 1841, and the1898 Bankruptcy Act, which remained intact until 1978. The Bankruptcy Reform Act of 1978 in turn gave way to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ("BAPCPA"), signed into law on April 20, 2005.
  
  

Features

• Bankruptcy courts are apportioned by judicial districts, with each state having at least one court. A judge presides over each court and is authorized to make all case-related decisions. Administrative tasks however, are frequently left in the hands of an appointed trustee.
  
  

Types

• According to Cornell University Law School, there are two distinct bankruptcy categories: liquidation according to Chapter 7, and restructuring in accordance with Chapters 11 to 13 of the Code.