Bankruptcy Reform Act of 1978

The Bankruptcy Reform Act of 1978 is a United States Act of Congress regulating bankruptcy and established the modern "chapter system" currently in place.
The current Bankruptcy Code was enacted in 1978 by § 101 of the Act which generally became effective on October 1, 1979. The current Code completely replaced the former Bankruptcy Act of 1898, sometimes called the "Nelson Act". The current Code has been amended multiple times since 1978.
This Act prohibits employment discrimination against anyone who has declared bankruptcy.

Provisions

Under this Act the following chapters were established:

Chapter 7 concerns the ability of persons, partnerships, and corporations to liquidate their assets and dispose of their debts. This form of bankruptcy is listed on a credit report for a length of 10 years. To qualify for this form of bankruptcy the debtor is subject to a means test
Chapter 9 concerns the ability of municipalities to restructure their existing debt into a more manageable timeline
Chapter 11 concerns the ability of railroads and most persons under chapter 7 to reorganize their debts while continuing operations. This form of bankruptcy is listed on a credit report for a length of 10 years.
Chapter 12 concerns the ability of farmers and fisherman with regular income to restructure their existing debt into a more manageable timeline
Chapter 13 concerns the ability of wage earners with regular income to restructure their existing debt into a more manageable timeline. This form of bankruptcy is listed on a credit report for a length of 7 years.
Chapter 14 allows for the recognition and insolvency of international debts