Bankruptcy Authority Network - Bankruptcy Services Network Authority Reference
The Bankruptcy Authority Network is a structured reference system covering the legal frameworks, procedural mechanics, and state-level resource landscape governing consumer and business bankruptcy in the United States. This page maps the network's member sites, defines the scope of bankruptcy law under Title 11 of the United States Code, and identifies the decision boundaries that distinguish one chapter filing from another. The network spans 107 member reference properties organized to serve researchers, legal professionals, and affected parties seeking jurisdictionally accurate information across all 50 states and federal territories.
Definition and scope
Bankruptcy in the United States operates as a federal legal proceeding governed by Title 11 of the United States Code, commonly referred to as the Bankruptcy Code. The United States Bankruptcy Courts — a unit of the federal Article III court system — administer all cases, meaning no state-level bankruptcy court system exists independently of the federal framework. However, state law governs critical exemption schedules, property classifications, and certain priority rules that interact with federal procedure at every stage of a case.
The Bankruptcy Code recognizes 6 primary chapters under which a case may be filed:
- Chapter 7 — Liquidation: A trustee is appointed to liquidate non-exempt assets and distribute proceeds to creditors. The debtor receives a discharge of eligible unsecured debts.
- Chapter 9 — Municipal Debt Adjustment: Available exclusively to municipalities, counties, and other governmental units meeting statutory definitions.
- Chapter 11 — Reorganization: Used by businesses and high-asset individuals to restructure debt while continuing operations under a confirmed reorganization plan.
- Chapter 12 — Family Farmer and Fisherman Reorganization: A specialized reorganization chapter with debt ceiling thresholds adjusted periodically by statute.
- Chapter 13 — Individual Repayment Plan: Allows individuals with regular income to repay all or part of their debts over a 3- to 5-year plan period.
- Chapter 15 — Cross-Border Insolvency: Implements the UNCITRAL Model Law on Cross-Border Insolvency for cases involving foreign proceedings.
The Administrative Office of the U.S. Courts publishes annual statistics on filing volumes, chapter distribution, and discharge rates across all 94 federal judicial districts.
Understanding terminology is foundational to navigating these proceedings accurately. The U.S. Legal System Terminology and Definitions reference page provides baseline definitions for terms such as "discharge," "exemption," "automatic stay," and "trustee" as they apply in bankruptcy contexts. For a broader structural orientation, the conceptual overview of how the U.S. legal system works situates bankruptcy courts within the federal judiciary hierarchy.
How it works
A bankruptcy case is initiated by filing a petition in the federal bankruptcy court serving the debtor's district. The filing triggers the automatic stay under 11 U.S.C. § 362, which immediately halts most collection actions, foreclosures, wage garnishments, and lawsuits against the debtor. The automatic stay is one of the most operationally significant features of bankruptcy law, providing an immediate legal shield from creditor enforcement while the case proceeds.
The procedural sequence for a standard Chapter 7 or Chapter 13 case follows these phases:
- Credit Counseling Requirement: Under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), debtors must complete an approved credit counseling course within 180 days before filing (11 U.S.C. § 109(h)).
- Petition and Schedules Filing: The debtor files Official Bankruptcy Forms — including Schedule A/B (assets), Schedule C (exemptions), Schedule D–F (creditors), and Schedule I/J (income and expenses) — with the bankruptcy court clerk.
- Trustee Appointment: The U.S. Trustee Program, a component of the Department of Justice, appoints a case trustee to administer the estate (28 U.S.C. § 586).
- 341 Meeting of Creditors: Named for 11 U.S.C. § 341, this mandatory meeting requires the debtor to appear and answer questions under oath from the trustee and any creditors who attend.
- Objection Period: Creditors have a set period — typically 60 days from the 341 meeting in Chapter 7 — to object to the discharge of specific debts.
- Discharge or Plan Confirmation: In Chapter 7, eligible debts are discharged by court order. In Chapter 13, the court confirms a repayment plan; discharge occurs after plan completion.
The U.S. Trustee Program oversees trustee conduct, monitors case administration, and enforces compliance with the Bankruptcy Code across all judicial districts except Alabama and North Carolina, which operate under a separate Bankruptcy Administrator program.
The network's hub — accessible through the National Legal Authority index — connects all state-level and practice-area members into a unified reference architecture. This allows researchers to move seamlessly between federal procedural information and the state-specific exemption rules that determine what debtors can keep.
Common scenarios
Bankruptcy proceedings arise across a predictable set of factual circumstances. The following scenarios represent the most structurally distinct filing contexts documented in federal court records and academic legal literature.
Consumer Chapter 7
A wage earner with primarily unsecured credit card debt and medical bills may qualify for Chapter 7 if household income falls below the applicable state median income threshold, as measured by the means test established under BAPCPA (11 U.S.C. § 707(b)). If the means test is satisfied, a Chapter 7 case can result in a discharge order within approximately 4 months of filing.
State-level exemption law determines what property survives liquidation. For California filers, the California Legal Services Authority documents the state's two alternative exemption systems — System 1 under California Code of Civil Procedure § 703 and System 2 under § 704 — which produce materially different outcomes depending on the debtor's asset profile. Texas filers encounter a distinct framework; the Texas Legal Services Authority covers Texas's unlimited homestead exemption and its interaction with Chapter 7 asset liquidation.
Chapter 13 Mortgage Cure
A homeowner facing foreclosure can use Chapter 13 to cure mortgage arrears over a 3- to 5-year plan while maintaining ongoing payments. The automatic stay halts foreclosure proceedings immediately upon filing. The Florida Legal Services Authority addresses how Florida's homestead protections intersect with Chapter 13 plan confirmation requirements in the Eleventh Circuit. Similarly, the Georgia Legal Services Authority outlines Georgia-specific procedural considerations for mortgage cure plans, including lender objection practices common in the Northern and Middle Districts of Georgia.
Small Business Chapter 11
Subchapter V of Chapter 11 — added by the Small Business Reorganization Act of 2019 — provides a streamlined reorganization path for businesses with debt below a statutory threshold (adjusted by the CARES Act in 2020 to $7.5 million temporarily, then modified by subsequent legislation). The Illinois Legal Services Authority covers Subchapter V practice in the Northern District of Illinois, one of the highest-volume commercial bankruptcy districts in the country. The New York Legal Services Authority addresses Chapter 11 practice in the Southern District of New York, which handles a disproportionate share of large corporate reorganizations nationally.
Chapter 9 Municipal Insolvency
Municipal bankruptcy under Chapter 9 requires state authorization before filing — not all states permit municipalities to file. The Pennsylvania Legal Services Authority documents Pennsylvania's municipal financial recovery framework, which operates alongside but distinct from Chapter 9. The Michigan Legal Services Authority addresses the legal architecture surrounding Detroit's 2013 Chapter 9 filing, the largest municipal bankruptcy in U.S. history by debt volume, as documented in federal court records from the Eastern District of Michigan.
Cross-Border Business Insolvency
Companies with operations spanning multiple jurisdictions may invoke Chapter 15, which coordinates U.S. proceedings with foreign insolvency proceedings under the UNCITRAL framework adopted by Congress in 2005. The New Jersey Legal Services Authority covers cross-border insolvency matters arising in the District of New Jersey, a jurisdiction with significant international commercial case volume.
Decision boundaries
Identifying which chapter applies — and whether bankruptcy is the appropriate proceeding at all — requires analysis against specific statutory thresholds, eligibility criteria, and jurisdictional variables. These boundaries are structural, not discretionary.
Chapter 7 vs. Chapter 13: The Means Test Divide
The means test under 11 U.S.C. § 707(b)(2) compares a debtor's average monthly income over the preceding 6 months against the applicable state median. If income exceeds the state median and disposable income after allowable deductions exceeds statutory thresholds, Chapter 7 is presumptively abusive