U.S. BANKRUPTCY COURTS - Each federal
district court has a bankruptcy unit that hears and
decides petitions of individuals and businesses seeking
relief from bankruptcy. Under the federal bankruptcy
code, there are four categories of such cases:
* Chapter 7 liquidation, for giving individuals &
businesses a fresh start;
* Chapter 11 reorganization, suitable for large corporate
debtors;
* Chapter 13 reorganization, suitable for individual
wage earners, and;
* Chapter 12 reorganization, suitable for family
farmers.
In the year ending June 30, 1992, 972,490 bankruptcy
petitions were filed, and 857,286 cases were terminated.
From 1985 to 1991, the number of bankruptcy petitions
filed more than doubled and has risen ever since.
Bankruptcy judges are appointed by the court of appeals
for a term of 14 years. There are 326 bankruptcy judges.
