Going through bankruptcy can be a complex legal process. You may have felt uncertain about whether or not to actually proceed with this type of debt relief as opinions on the process can vary. However, bankruptcy can offer you a multitude of benefits when it comes to addressing your outstanding debt. Therefore, you may wish to better understand certain aspects of this option.

Though you must go through the proper legal channels to complete bankruptcy, you may find it interesting to know that bankruptcy filings can only take place in federal court. This means that state courts have no ability to hear bankruptcy cases due to the specialized nature of this type of process.

Why federal court?

Federal courts have jurisdiction over bankruptcy cases to provide consistent application of the same laws and regulations no matter where you live. Bankruptcy laws exist at the federal level due to the potential for variances from state to state. This way the court handles each case according to the same set of regulations. However, this stipulation also means that you must find the corresponding federal court that will have jurisdiction over your case.

Where should you file?

A bankruptcy court exists in each of the 94 federal judicial districts. The one that will hear your case must relate to your place of primary residence, location of business or location of principal assets. If you still feel uncertain about where to file, a legal professional here in California could help you obtain this information.

Who makes bankruptcy decisions?

A judge will likely take part in your bankruptcy proceedings. Bankruptcy judges serve terms of 14 years after appointment by the United States Court of Appeals. If you disagree with any of the outcomes of your bankruptcy case as decided by the judge, you have the opportunity to file an appeal with the appellate court.

What type of bankruptcy should you file?

Your specific type and amount of debt as well as your income and other financial factors could play a role in the type of bankruptcy that best suits your needs. Therefore, you may wish to explore Chapter 7 and Chapter 13 bankruptcy to find out more on these avenues for personal debt relief. If your outstanding balances are business related, information on Chapter 11 bankruptcy may better suit your circumstances.

Having to go through court proceedings can understandably cause apprehension. However, gaining knowledge on what to expect during your bankruptcy case could help you feel more at ease.