Understanding Bankruptcy

The Court Definition

A place where opposite sides to a problem can meet and bring their proofs and accusations against each other under the supervision of higher authority which holds the right to issue orders and decisions pertaining to the specific question being presented. In accordance with democracy theory, the court ought to be a separate part of the government with the right to rule against the government for the favor of the other party. The United States Constitution had created the United States Supreme Court and gave the Congress the right to affirm or deny nomination of Judges and audit the court funds.

The United States legal system had been developed in accordance with rights and division of power stated within the United States Constitution. Because states' rights are protected by the Constitution, each state had to develop a court system to answer the needs of its citizens. If a case involves a federal question, the case is submitted to a federal court for ruling. All matters relating to commerce is under the federal government supervision.

Article I, Section 8, of the United States Constitution gave the Congress (a federal authority) the power to establish "uniform Laws on the subject of Bankruptcies throughout the United States". Thus, the Congress entrusted the federal court system with administrating bankruptcy procedures and rulings. Different from other legal tools, bankruptcy is modified through the Congress by issuing laws regarding required forms and schedules. Previous court decisions alter some of the smaller components such as submission time limits.

Currently, the United States federal court system is moving away from physical paperwork and seeking to digitalize all paperwork. Attorneys and their staff are required to undergo training and earn the right to file using Electronic Court Filing – commonly known as ECF – for all bankruptcy paperwork.