Article III of the U.S. Constitution says that the judiciary is one of the three separate and distinct parts of the federal government, along with the legislative and executive branches. People think of federal courts as the guardians of the Constitution because their decisions help protect the rights and freedoms that the Constitution promises. A fair and just system for all U.S. citizens is impossible without a judiciary that is not controlled by the government.
There are 94 federal court districts.
There are 94 federal judicial districts with bankruptcy courts that deal with everything to do with filing for bankruptcy. You can't file for bankruptcy in a state court, and bankruptcy laws help people who can't pay their debts get a fresh start by selling their assets to pay off their debts or making a plan to pay back their debts.
Bankruptcy courts and laws work together to protect businesses that are in trouble and help creditors get their money in an orderly way. This can be done through reorganisation or liquidation. Title II of the Bankruptcy Code describes the steps that need to be taken in a bankruptcy court. Most cases filed fall under the Bankruptcy Code's three main chapters, which are Chapters 7, 11, and 13.
The United States bankruptcy court is a federal court that handles all kinds of bankruptcy cases. Each of the 94 federal judicial districts with active bankruptcy judges is called a "unit" of the relevant United States district court. The United States court of appeals chooses the people who will serve as bankruptcy judges for a fourteen-year term.
Technically, the US district courts can handle bankruptcy cases, but each district court must send bankruptcy cases to the bankruptcy court. At least at first, the bankruptcy court handles everything that has to do with filing for bankruptcy.
But if there are unusual circumstances, the district court can pull the bankruptcy case out of the bankruptcy court's hands and decide the matter itself. Most bankruptcy cases are taken care of by a bankruptcy judge who sits in a bankruptcy court. This judge can make decisions that are final unless the case is taken to the district judge, who can review the decision.
