U.S. Bankruptcy Courts

Each district court has a bankruptcy unit that hears and decides petitions of individuals and businesses seeking relief from bankruptcy. Under the federal bankruptcy code, there are four categories of such cases:

• Chapter 7 liquidation, suitable for giving individuals and businesses a fresh start;
• Chapter 11 reorganization, suitable for large corporate debtors;
• Chapter 13 reorganization, suitable for individual wage earners; and
• Chapter 12 reorganization, suitable for family farmers.

Bankruptcy judges are appointed by the court of appeals for a term of 14 years. There are 326 bankruptcy judgeships.