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What Is Bankruptcy Court?


Many types of laws exist to address common issues faced by people. These issues may be broad and general in their scope while others address more specific matters. One type of law that addresses the general area of bankruptcy is referred to as bankruptcy law. This area of law addresses issues concerning consumer, business, and all other forms and means of bankruptcy. Thus, all issues regarding bankruptcy laws are judged in a special court called bankruptcy court.


Different types of bankruptcy exist—for consumers, businesses, persons, and other entities. Thus, bankruptcy issues may involve many people or businesses. In the United States, most bankruptcy issues if not all are designed to be decided upon in a bankruptcy court. This is to provide a more convenient and easier solution to most of the bankruptcy problems faced by people, as well as to provide judges who are extremely knowledgeable of the bankruptcy laws and code.


In the United States, bankruptcy courts are at the level of federal courts. However, some bankruptcy cases can be tried at a district level in the event that such cases are not referred to a bankruptcy court. It is common for bankruptcy cases to have a standing referral order in place that immediately forwards the bankruptcy cases to a bankruptcy court.


Judges for a bankruptcy court hold a term of 14 years and are appointed by the United States Court of Appeals. The Bankruptcy Appellate Panel is a group of judges whose specific task is to hear bankruptcy case appeals.

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