U.S.
GOVERNMENT > The Three Branches > Judicial Branch > 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.
