U.S. Bankruptcy Courts

Each federal 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, for giving individuals & 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.

In the year ending June 30, 1992, 972,490 bankruptcy petitions were filed, and 857,286 cases were terminated. From 1985 to 1991, the number of bankruptcy petitions filed more than doubled and has risen ever since.

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