When a business is unable to service its debt or pay its creditors, the business or its creditors can file with a federal bankruptcy court for protection under either Chapter 7 or Chapter 11.

One 2007 study found this was because businesses were turning to bankruptcy-like proceedings under state law, rather than the federal bankruptcy proceedings, including those under chapter 11.

Cases involving more than US $ 50 million in assets are almost always handled in federal bankruptcy court, and not in bankruptcy-like state proceeding.

In fall 1976, however, amid the turmoil of New York City's dire fiscal crisis, the free tuition policy was discontinued under pressure from the federal government, the financial community that had a role in rescuing the city from bankruptcy, and New York State, which would take over the funding of CUNY's senior colleges.

* 2001 – The Polaroid Corporation files for federal bankruptcy protection.

Publicly traded Xybernaut tried forging alliances with companies such as IBM and Sony in order to make wearable computing widely available, but in 2005 their stock was delisted and the company filed for Chapter 11 bankruptcy protection amid financial scandal and federal investigation.

* June 1 – William M. Gibbons is released as receiver and trustee of the Chicago, Rock Island & Pacific railroad, after all of its debts and creditors are paid off by order of a federal bankruptcy court.

Everything came to a head in 1979 when Chrysler's new chairman, Lee Iacocca, requested and received federal loan guarantees from the United States Congress in an effort to save the company from having to file bankruptcy.

Some of the most notable cases exclusively in federal jurisdiction are suits between state governments, suits involving ambassadors, certain intellectual property cases, federal criminal cases, bankruptcy cases, large interstate class action cases, and most securities fraud class actions.

The bankruptcy court then determines if the interrupted state court proceeding should be returned to state court for resolution, or should be resolved in a federal bankruptcy court adversarial proceeding, based upon the applicable bankruptcy law.

When a troubled business is badly in debt and unable to service that debt or pay its creditors, it may file ( or be forced by its creditors to file ) for bankruptcy in a federal court under Chapter 7.

Individuals who reside, have a place of business, or own property in the United States may file for bankruptcy in a federal court under Chapter 7 (" straight bankruptcy ", or liquidation ).

The Railroad Revitalization and Regulatory Reform Act of 1976, often called the " 4R Act ," is a United States federal law that established the basic outlines of regulatory reform in the railroad industry and provided transitional operating funds following the 1970 bankruptcy of Penn Central Transportation Company.

Following Marshall's death, Smith began a lengthy legal battle over a share of his estate ; her case, Marshall v. Marshall, reached the U. S. Supreme Court on a question of federal jurisdiction and again on a question of bankruptcy court authority ( now called Stern v. Marshall ).

The federal district courts have original and exclusive jurisdiction over all cases arising under the bankruptcy code, ( see ), and bankruptcy cases cannot be filed in state court.

Each of the 94 federal judicial districts handles bankruptcy matters.

Section 3 of DOMA has been found unconstitutional in seven federal courts on issues including bankruptcy, public employee benefits, estate taxes, and immigration.

Three territories of the United States — the Virgin Islands, Guam, and the Northern Mariana Islands — have district courts that hear federal cases, including bankruptcy cases.

Finally on July 7, 2006, the federal judge, Ellen Carroll, ordered a bankruptcy trustee takeover of Suge Knight's Death Row Records, saying the record label had undergone a gross amount of mismanagement.

On motion of the Amici Curiae, the court directed that a ruling be obtained from the Commissioner of Internal Revenue as to the federal income tax consequences of the Government's plan.

A flood of federal lower court injunctions seriously impeded the processes of local government.

In 1913 an abortive provision was made for the stay of federal injunction proceedings upon institution of state court test cases.

Its enforcement was enjoined by a federal trial court.

The Lincoln Mills decision authorizes a whole new body of federal `` common law '' which, as Mr. Justice Frankfurter pointed out in dissent, leads to one of the following `` incongruities '': `` ( ( 1 ) conflict in federal and state court interpretations of collective bargaining agreements ; ;

Congress has not clearly defined the bounds between state and federal court competence.

It would also probably mean different things within the same state -- depending upon what court ( state or federal ) rendered decision.

Litigants who choose to assert federal claims in a state court go into that court subject to its rules of procedure.

The charge that the federal indictment of three Chicago narcotics detail detectives `` is the product of rumor, combined with malice, and individual enmity '' on the part of the federal narcotics unit here was made yesterday in their conspiracy trial before Judge Joseph Sam Perry in federal District court.

In the federal courts, the parties ' names always stay in the same order as the lower court when an appeal is taken to the circuit courts of appeals, and are re-ordered only if the appeal reaches the Supreme Court.

For example, a criminal defendant may be convicted in state court, and lose on " direct appeal " to higher state appellate courts, and if unsuccessful, mount a " collateral " action such as filing for a writ of habeas corpus in the federal courts.

Similar to federal post-conviction relief, an appellant can petition the court to correct alleged fundamental errors that were not corrected on direct review.

In the U. S. federal court system, criminal defendants must file a notice of appeal within 10 days of the entry of either the judgment or the order being appealed, or the right to appeal is forfeited.

In the United States, both state and federal appellate courts are usually restricted to examining whether the lower court made the correct legal determinations, rather than hearing direct evidence and determining what the facts of the case were.

In most U. S. states, and in U. S. federal courts, parties before the court are allowed one appeal as of right.

In the federal system, Federal Rule of Criminal Procedure 32 ( i )( 4 ) provides that the court must " address the defendant personally in order to permit the defendant to speak or present any information to mitigate the sentence.

* 1958 – A United States federal court rules that poet Ezra Pound be released from an insane asylum.

Arbor Day reached its height of popularity on its 125th anniversary in 1997, when David J. Wright, noticed that a Nebraska nonprofit organization called the National Arbor Day Foundation had taken the name of the holiday and commercialized it for their own use as a trademark for their publication " Arbor Day ," so he countered their efforts, launched a website, and trademarked it for " public use celebrations " and defended the matter in a federal district court in the United States to ensure it was judged as property of the public domain, the case was settled in October 1999.

The terms of the Artistic License 1. 0 were at issue in a 2007 federal district court decision in the US which was criticized by some for suggesting that FOSS-like licenses could only be enforced through contract law rather than through copyright law, in contexts where contract damages would be difficult to establish.

On appeal, a federal appellate court " determined that the terms of the Artistic License are enforceable copyright conditions ".

In 2005, a California federal court ruled that a group alleging that anthroposophy is a religion for Establishment Clause purposes did not provide any legally admissible evidence in support of this view ; the case is under appeal.

According to federal guidelines, only approved religious symbols — of which there are 38 — can be placed on government headstones or memorial plaques.

Despite the criticisms, DES was approved as a federal standard in November 1976, and published on 15 January 1977 as FIPS PUB 46, authorized for use on all unclassified data.

* 1899 – Voting machines are approved by the U. S. Congress for use in federal elections.

However, although he could not get federal funding for empowerment zones passed during his tenure, by 1992 38 states had created empowerment zones, and in 1994 $ 3. 5 billion was approved for them under President Clinton.

After President George W. Bush approved the execution ( McVeigh was a federal inmate and federal law dictates that the President must approve the execution of federal prisoners ), he was executed by lethal injection at the Federal Correctional Complex, Terre Haute in Terre Haute, Indiana, on June 11.

A budget outlining 2011 ’ s federal expenditures was also put before and approved by members of parliament, with the payment of civil service employees prioritized.

On June 23, 2012, the Somali federal and regional leaders met again and approved a draft constitution after several days of deliberation.

A budget outlining 2011 ’ s federal expenditures was also put before and approved by members of parliament, with the payment of civil service employees prioritized.

On June 23, 2012, the Somali federal and regional leaders met again and approved a draft constitution after several days of deliberation.

Amendments of the Federal Constitution of Switzerland, the joining of international organizations or changes to federal laws that have no foundation in the constitution but if in force for more than one year must be approved by the majority of both the people and the cantons, a ( double majority ).

In the morning hours of September 21, the Congress approved a bill to prop up the airline industry and establish a federal fund for victims.

The Brazilian federal constitution states that the power to enter into treaties is vested in the president and that such treaties must be approved by Congress ( articles 84, clause VIII, and 49, clause I ).

* February 14 – Voting machines are approved by the U. S. Congress for use in federal elections.

Waiver of the consent requirement may be applied in certain circumstances where no foreseeable harm is expected to result from the study or when permitted by law, federal regulations, or if an ethical review committee has approved the non-disclosure of certain information.

Subway's trademark application for " footlong " has yet to be approved by the federal government ; A & W, Pizza Hut, Kentucky Fried Chicken, Taco Bell, Long John Silver's and other restaurants are opposing that application.

In 1986, the federal government and the Nation approved a settlement which the Nation agreed to give up its legal claims in exchange for $ 30, 000, 000 and the right to add replacement land to its Reservation.

The deal was approved by federal judge Jed Rakoff in July 2003.

In 1993 the parliament approved a constitutional package transforming Belgium into a full-fledged federal state.

The current coat of arms ( see above ) approved on November 28, 2004 contains the same red shield with a slightly changed figure of the lion topped with the golden five-tower status crown of a federal subject administrative center.

The states approved the new federal numbering system in November 1926 and began putting up new signs.

In November 2010, a federal judge ordered the destruction of plantings of genetically modified sugar beets developed by Monsanto after ruling previously that the U. S. Agriculture Department had illegally approved the biotech crop.

The local effort came to the attention of a federal agency, the Economic Development Administration, which approved a large grant to the City of Bisbee to help the mine tour project and other improvements in downtown Bisbee designed to aid the tourist business.