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Bankruptcy procedure is dictated by the Federal Rules of Bankruptcy Procedure, often referred to as the “Bankruptcy Rules” or the “Bankruptcy Code.” A Delaware bankruptcy attorney will explain a debtor’s rights under the Bankruptcy Code. Additionally, bankruptcy courts have local rules. These rules dictate the formal legal procedure for dealing with debt problems.

For each judicial circuit in the country, there is a bankruptcy court. Each state has at least one district. But depending on the size of the state, it may have more than one district. Each bankruptcy court generally has its own clerk’s office. A bankruptcy judge may decide any matter connected with a bankruptcy case. A Delaware bankruptcy lawyer advises a person of his or her rights, of the procedural code for bankruptcy and makes sure the bankruptcy filing is concurrent with the current Bankruptcy Code and local rules.

Most of the bankruptcy process for Chapter 7 liquidation and Chapter 13 reorganization is administrative and is carried out by a trustee. For each bankruptcy case, a trustee is assigned to oversee the case. One of the few times a debtor has to appear before the trustee is for the Meeting of Creditors (also known as a “341 Meeting,” so called because Section 341 of the Bankruptcy Code requires that the debtor attend this meeting) or if an objection is raised in his or her case. An individual who files Chapter 13 reorganization may also have to appear before the judge at a plan confirmation hearing.

At the end of the case, a bankruptcy discharge is given. The bankruptcy discharge releases debtors from personal liability from specific debts. It prohibits creditors from taking action against the debtor to collect those debts.

The Law Office of Vivian Houghton, an experienced bankruptcy firm, keeps up with the changes in the bankruptcy code, such as the extensive changes enacted in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. This act requires the application of a means test to determine if an individual consumer qualifies for relief under Chapter 7 of the Bankruptcy Code.

If a debtor does not qualify under Chapter 7, he or she can file under Chapter 13. Filing under Chapter 13 allows the debtor to remain in possession of certain property of the estate and to make payment to creditors over a set time period.

When a debtor files under Chapter 13, his or her bankruptcy attorney helps him or her to devise a repayment plan that the bankruptcy court will accept. Once the bankruptcy court accepts the plan and all payments are made according to the plan, the bankruptcy is discharged.