Bankruptcy Court - A Definition

Bankruptcy Court is a court that deals with bankruptcy cases. In the United States, there is a federal bankruptcy court in each judicial district. Bankruptcy cases are filed in the bankruptcy court in the district where the debtor has resided or has had a principal place of business for the greater part of the 180 days before filing.

A bankruptcy case starts when the debtor files a petition with the bankruptcy court. The petition may be filed by an individual, partnership, or corporation. Once the petition is filed, an automatic stay goes into effect. This means that most collection actions against the debtor and his/her property are prohibited.

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