Alabama Private Investigator Practice Exam

Where can bankruptcy records typically be found?

1. State Courthouse

2. Federal Courthouse

3. Local Government Office

4. Private Investigation Firms

The correct answer is: Federal Courthouse

Bankruptcy records are typically found in federal courthouses because bankruptcy law is governed primarily by federal law. When individuals or businesses file for bankruptcy, they proceed under federal bankruptcy statutes, which means that their cases are handled in federal court. Federal courthouses house the records related to such filings, including details about the bankruptcy cases, filings, and the outcomes. This centralized system helps maintain consistency across the country in handling bankruptcy matters, as opposed to state laws, which can vary significantly. While state courthouses may hold some related documents, and local government offices might have general information about businesses operating within their jurisdiction, the specific records of bankruptcy cases are the responsibility of the federal court system. Private investigation firms, on the other hand, do not maintain legal records like bankruptcy filings; they primarily conduct investigations based on private client requests.