Bankruptcy Appellate Panel

A Bankruptcy Appellate Panel (BAP) is a group of three judges who are appointed to hear appeals from certain bankruptcy cases by the supervision of the United States Federal Court of Appeals. The following federal judicial circuits have established BAP’s: 1st, 6th, 8th, 9th and 10th circuits.

Each BAP judicial circuit has its own local rules in addition to the Federal Rules of Bankruptcy Procedure and Federal Rules of Appellate Procedure. Parties to a bankruptcy case retain the right to select a district court instead of a BAP to hear their case. BAP judges are usually barred to hear cases from their own bankruptcy district. Bankruptcy cases cannot be filed in state courts.

Bankruptcy Laws

Bankruptcy laws help people who can no longer pay their debts to the creditors to get a fresh start to pay debts or to create a new payment plan. It also helps troubled business to order their business through reorganization or liquidation. All these procedures are covered under Title 11 of the United States Code (the Bankruptcy Code). The vast majority of bankruptcy cases are filed under four main Chapters of the Bankruptcy Code. They are Chapter 7, Chapter 11, Chapter 12 and Chapter 13.

Bankruptcy falls into one of two categories which are reorganization and liquidation. When making a decision to file bankruptcy, it is recommended to speak to a bankruptcy lawyer. A lawyer can explain the differences between bankruptcy types and which type will work in that particular case.

Chapters of the Bankruptcy Code

Chapter 7 is the most common type of bankruptcy, which falls under the liquidation category. If your case falls under this category, the court will appoint a trustee to collect your non-exempt property and to sell it. Afterwards, the proceeds will be divided among your creditors.

Chapter 11, 12 and 13 allow the debtor to reorganize his or her business, to keep some or all of his or her property and to pay off the creditors through his or her future earnings. Most individuals file Chapter 13, which allows the debtor to keep all of his or her property and to pay off the creditors within three to five years. Chapter 12 is similar to Chapter 13 but is available only for “family farmers” and “family fisherman” in some situations. Chapter 11 is typically for businesses and those with large debts.

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