Title 11: Bankruptcy
Federal bankruptcy proceedings including Chapter 7 liquidation, Chapter 11 reorganization, Chapter 13 individual debt adjustment, and municipal bankruptcy.
15 chapters · 264 sections · 5 key sections available
Key Sections (5)
Definitions
This section defines key bankruptcy terms like claim, creditor, debt, and debtor. A claim is any right to payment regardless of whether it is disputed or finalized.
Automatic Stay
When someone files for bankruptcy, an automatic stay immediately halts all collection efforts, lawsuits, foreclosures, and repossessions against the debtor, giving them breathing room.
Exceptions to Discharge
Certain debts survive bankruptcy and cannot be wiped out, including most taxes, child support, alimony, student loans (unless extreme hardship), debts from fraud, and DUI-related judgments.
Dismissal of Case or Conversion to Chapter 11 or 13 — Means Test
Courts can dismiss Chapter 7 bankruptcy if the debtor earns too much money to qualify. The means test compares your income to expenses to determine if you can repay some debts through Chapter 13 instead.
Stay of Action Against Codebtor in Chapter 13
When someone files Chapter 13 bankruptcy, creditors cannot go after co-signers on consumer debts while the debtor is making payments under their repayment plan.