Bankruptcy Court Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Bankruptcy Court, written in plain English, along with examples of how it is used.
What is Bankruptcy Court?
(n) Bankruptcy Court is legal authority who can hear and decide on petitions from persons or business entities requesting them to be declared as bankrupt when their liabilities exceeds the assets and properties owned by them and such entity has no means to settle the dues to their creditors fully.
History and Meaning of Bankruptcy Court
Bankruptcy Court is a specialized court that deals with cases related to bankruptcy. The court was established by Congress as a part of the Bankruptcy Reform Act of 1978. The role of the court is to oversee bankruptcy cases and make decisions regarding the discharge of debts and liquidation of assets.
The Bankruptcy Court is a federal court that has jurisdiction over bankruptcy cases. The court is responsible for administering and enforcing bankruptcy laws. It hears petitions from individuals and businesses seeking protection under bankruptcy laws and makes decisions on the discharge of debts and liquidation of assets.
Examples of Bankruptcy Court
John filed for bankruptcy and his case was heard in the Bankruptcy Court.
ABC Corporation requested to be declared as bankrupt, and the Bankruptcy Court approved the request.
The Bankruptcy Court ruled that the debtor's assets must be liquidated to pay off its creditors.
Legal Terms Similar to Bankruptcy Court
Chapter 7 Bankruptcy: A type of bankruptcy filing that involves the liquidation of assets to pay off creditors.
Chapter 11 Bankruptcy: A type of bankruptcy filing for businesses that reorganizes debts rather than liquidating assets.
Bankruptcy Trustee: A court-appointed official who manages the assets of a bankrupt entity and ensures that creditors are paid as much as possible.