Docket

Bankruptcy Court

Declaring bankruptcy may scare most people but sometimes there is no other option.  Credit card companies will chase you all the way to bankruptcy court.  Fortunately, bankruptcy court is a federal court given to us as protection.  Bankruptcy court just might be the best gateway to start over.  Although bankruptcy can stay on a credit report for up to 10 years or hurt your future job search, it may help you start over with your credit.

Each bankruptcy court is a federal court that deals with bankruptcy cases and matters. There are 94 federal courts that comprise the judiciary branch of government.  Each federal court is split into one of three categories. General trial federal courts, federal courts with appellate jurisdiction, and the federal court of last resort (Supreme Court).  Therefore, your local federal court also doubles as your bankruptcy court.

Before you go to bankruptcy court, however, you must obtain credit counseling from an entity approved by the U.S. Trustee within 180 days of filing your case. This is due to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (”BAPCPA”), which heavily amended the workings of the bankruptcy court.

So if you decide you need to file bankruptcy in order to save your financial future, what should you do and what should you be aware of?  Here are some steps that you can follow to make your bankruptcy as painless as possible:

1.  Determine whether or not it is necessary for you to file for bankruptcy.

Avoiding federal court is almost always a good idea.  Bankruptcy can cripple you financially for up to 10 years.  Do everything you can to make sure you are not at your last option.  Going to bankruptcy court will also accrue expensive fees, including court, application, and lawyer fees.

2.  If you choose to file for bankruptcy, review your options with the consultation of a lawyer.

Many people file bankruptcy without a lawyer.  There are many factors to consider, however, when dealing with bankruptcy court.  For example, bankruptcy court requires that you file as one of two types of bankruptcy.  There is the chapter 7 (liquidation bankruptcy) and the chapter 13 (repayment plan) bankruptcy.  Ask your lawyer which one fits you the best.

3.  Meet with a credit counselor.

Now, when an individual files for bankruptcy, the BAPCPA requires him or her to meet with a credit counselor within 180 days of bankruptcy filing.  Be completely honest with the counselor, as he or she holds the power to deny your bankruptcy claim.  You will be sworn in after a 10 minute meeting.

Tips:

-You may not be able to avoid paying tax bills or student loans.  Be prepared for this.  It depends on certain Bankruptcy Code provisions and how well your creditors convinced the judge that you should still pay those debts.
-Only creditors will find out about your trip to the bankruptcy court.  Be honest about your bankruptcy though, as anybody can find the truth.
-When you enter a federal court, make sure you are prepared and respectful.  Federal courts are the courts with the highest authority.

Court Cases

Although our courtrooms have been full for hundreds of years, there are always situations that do not yet have a precedent. Our courts are set to rule on tons of different cases, but when a unique case comes through, sometimes it has to go to a higher court to get another ruling. When an unprecedented case goes to a local court, it can then be appealed to a federal and then eventually to the supreme court. Famous supreme court cases have stuck in our minds as well as our culture. When a case goes to the supreme court, you can bet that it is important and the ruling may have a profound effect on the entire country, if not the world. Here are four of the most important supreme court cases.

1. Dred Scott v. Sandford – These types of supreme court cases can be a bit unsettling. We hope that supreme court cases will uphold or rights as human beings, but that is not always the case. In 1857, a slave named Dred Scott sued for his freedom, but the supreme court ruled that people of color living in the United States were not considered citizens and therefore did not have any rights. This was a dark time in our country’s history.

2. Plessy v. Ferguson – Another one of the supreme court cases that sully our country’s history. Plessy v. Ferguson was an 1896 case in which the supreme court ruled in favor of the “seperate but equal” law. The “separate but equal” law said that as long as both races were given the same amenities, it is lawful to keep them separated.

3. Brown v. The Board of Education – This was an incredibly important supreme court case. Before the ruling, white and black children were forced to go to different schools. Thankfully this is one of the supreme court cases where the supreme court made the right decision. During this 1954 case, the supreme court ruled that the “separate but equal” laws were unconstitutional and did not belong in our society. This is one of the landmark supreme court cases in terms of race relations.

4. Roe v. Wade – Supreme court cases are often very controversial, and this is no exception. During this case it was ruled that abortions will be legal as long as it is within the first seven months of pregnancy. Supreme court cases have always had opposing sides that had strong opinions about the outcome, but Roe v. Wade is a supreme court decision that still polarizes a large amount of citizens to this day.

The supreme court makes landmark decisions every time they hear a case. That is a part of a supreme court justice’s job description. There have been a number of supreme court cases where basically the wrong ruling was made, but thankfully future supreme court justices learned from the errors of the past and have made better decisions this time around, especially in cases dealing with race relations.

Federal Court

While most people are only familiar with their local court and the supreme court, there are also many federal courts out there that have many different specialties. The federal courts are any United States court that is considered to be within the federal system. A United States court could be a district court where many trials are held, or they could handle one of the several specialties available in the judicial system. Since many people are not well versed in what a United States court does, Here are some of the issues that the federal courts cover.

1. Bankruptcy – A United States court is the only court that can handle issues with bankruptcy. State courts are not legally allowed to handle these types of cases. Whether the issue involves a single person or entire corporations that are dealing with bankruptcy, these cases are left to the federal courts.

2. Taxes – Disputes regarding tax issues would also be handled by a United States court. If anybody believes that they are being taxed wrongfully or someone simply refuses to pay taxes, their cases would go straight to the federal courts so that they can decide whether there has been a misunderstanding or not. Nobody likes to pay their taxes, but there are some people out there that actually go a step further and litigate matters regarding taxes.

3. International Trade – This is a United States court that deals with trading and customs laws of the international kind. This is one of the federal courts that can only deal with a small number of issues. Basically, any disputes involving international trade is sent directly here.

4. Claims – The federal courts are in place so that issues involving the government can be dealt with in a fair way. The claims court is a United States court where people can go if they think that the government owes them money. The way small claims court is used when you believe somebody else owes you a small amount of money, this United States court functions similarly but instead of your dealing with your neighbor stealing your lawnmower, it is the big, scary United States government you’ll be seeing in the federal courts.

5. Foreign Intelligence – These federal courts are used when a warrant is needed against a potential foreign spy. If James Bond ever comes around to our parts, this United States court will make sure he is apprehended before he can use his watch to take pictures of our country’s secrets.

There are many interesting federal courts out there that were not covered, but if this type of thing interests you, definitely do some research on the internet. It is always a good idea to have a better understanding of what exactly goes on in our legal system (in case you ever find yourself in a United States court yourself). Our judicial system is what makes our country great, so do yourself a favor and learn about your federal courts!