U.S. Bankruptcy Courts Law and Legal Definition

Bankruptcy Courts were created under Article I of the U.S. Constitution by United States Congress in 1979. They have subject-matter jurisdiction over bankruptcy cases, and are units of the district courts. Bankruptcy cases cannot be filed in state courts since the federal district courts have original and exclusive jurisdiction over all cases arising under the bankruptcy code. In almost all the 94 federal judicial districts, bankruptcy cases are filed in the bankruptcy courts.