money sectionmoney sectionJurisdiction refers to the power of a court to exercise power over a case. In order for a court to hear a certain case, the court needs to have the authority to exercise its power over the person bringing the case and the authority to exercise power over the subject matter of the case. In a bankruptcy proceeding, a bankruptcy court must be able to exercise power over the debtor and the subject matter of the case.
When a consumer is no longer able to find any way to repay his debts, he is able to file for bankruptcy with the federal government. Individuals can choose between two types of bankruptcy. Chapter 7 bankruptcy, or "straight" bankruptcy, requires the court to monitor the consumer's asset sales and uses the proceeds to repay creditors. Chapter 13, "reorganization" bankruptcy, lets wage earners repay past-due balances over time.
In Australia, a bankruptcy case may be initiated in either federal court or a federal magistrates court. The rules and procedures are the same in both courts, but the most the cases are heard in federal magistrates court. A bankruptcy case is generally started by a creditor who believes that a debtor is not able to pay the debt owed.
Most people who are deciding to file for bankruptcy or thinking about it, are faced with more debt than they can handle. For some, bankruptcy is the only way to get their lives and economics back on track. Bankruptcy is a legal process than can affect your credit for quite a few years, so for many this is a last resort. Outlined below are some facts about bankruptcy and how to file.
