Platinum Law Group: General Information on Bankruptcy Featuring Platinum Law Group
Platinum Law Group: General Information on Bankruptcy Featuring Platinum Law Group
As described by Platinum Law Group, bankruptcy is a legally declared inability or impairment of ability of anual or organ individization to pay its creditors. Creditors may file a bankruptcy petition against a business or corporate debtor (“involuntary bankruptcy”) in an effort to recoup a portion of what they are owed or initiate a restructuring. However, in the majority of cases, bankruptcy is initiated by the debtor (a “voluntary bankruptcy” that is filed by the insolvent individual or organization). Platinum Law Group points out that an involuntary bankruptcy petition may not be filed against an individual consumer debtor who is not engaged in business.
Bankruptcy in the United States
Bankruptcy in the United States is a matter placed under Federal jurisdiction by the United States Constitution (in Article 1, Section 8, Clause 4), which generally allows Congress to enact “uniform laws on the subject of bankruptcies throughout the United States.” The Congress has enacted statute law governing bankruptcy, primarily in the form of the Bankruptcy Code, located at Title 11 of the United States Code. Platinum Law Group notes that federal law is amplified by state law in some places where Federal law fails to speak or expressly defers to state law.
While bankruptcy cases are always filed in United States Bankruptcy Court (an adjunct to the U.S. District Courts), bankruptcy cases, particularly with respect to the validity of claims and exemptions, are often dependent upon State law. Platinum Law Group finds that state law therefore plays a major role in many bankruptcy cases, and it is often not possible to generalize bankruptcy law across state lines.
