There are 94 federal judicial districts in this America, and in almost all districts, bankruptcy cases are filed in the bankruptcy court. Almost all districts of separately appointed federal judges that just handle bankruptcy filing and related matters. Bankruptcy cases cannot be filed in state court. Why are there separate federal bankruptcy courts? Mainly because there are a lot of bankruptcies filed and these cases and people need an expert system to handle them. Bankruptcy laws help people who can no longer pay their creditors get a fresh start by liquidating their assets to pay their debts, or by creating a repayment plan. Bankruptcy laws also protect troubled businesses and provide for orderly distributions to business creditors through reorganization or liquidation. These procedures are covered under Title 11 of the United States Code (the Bankruptcy Code). The vast majority of cases are filed under the three main chapters of the Bankruptcy Code, which are Chapter 7 , Chapter 11, and Chapter 13.
