Bankruptcy is a federally governed process whose cases are only heard in federal courts. Because they are federal, bankruptcy proceedings are binding. Bankruptcy courts are more closely related to civil courts where two parties are attempting to resolve a lawsuit, except in bankruptcy court, there are no winners or losers, only two parties attempting to reach a resolution between the debtor and money owed.
A second, and large difference between bankruptcy court and other federal courts, is that the bankruptcy court laws come from congress and not the constitution, which means that their process is a little different. In normal federal court, and appeal would me going to an appeal court, but in bankruptcy a federal trail court date is set instead.
The third and final difference we’ll discuss between federal courts and bankruptcy courts is jurisdiction. A bankruptcy court’s jurisdiction is its official and legal power to make decisions and judgments and in bankruptcy court it is significantly smaller than most normal federal courts. What this means is that bankruptcy courts only handle bankruptcies and their appeals. Any other legal decision must be handed over to other federal courts in order to come to a conclusion.
Because of the narrow scope of bankruptcy courts, it is a highly recommended that anyone seeking this form of legal debt relief seek the advice of a competent bankruptcy attorney. This offers a number of distinct advantages for the debtor, among them being that hiring the right bankruptcy attorney will give you valuable insight to how the court in your district operates, in addition to, having worked with the employees of the court in the past. In other words, a Dallas bankruptcy attorney who has worked in your area will know the players inside the court system, how they like to work, and how they think.