CC Brown Law – Bankruptcy Law is Meant to Help you Not Hurt You

CC Brown Law Bankruptcy Law is Meant to Help you Not Hurt You

Bankruptcy law not only defends the interest of the government and the creditors, but it also defends the debtor who is filing bankruptcy. There have been several chapters of bankruptcy developed to fit the special needs of those filing bankruptcy and certain laws to be followed with them. Various chapters comes under Bankruptcy process are,

Chapter 7 - This is the most common form of bankruptcy. Liquidation postulates the appointment of a trustee who collects the liable property of the debtor, sells it and distributes the proceeds to the creditors.

Chapter 9 - This is available only to municipalities, it is a form of reorganization, not liquidation.,

Chapter 11, 12 and 13 These are more complex reorganization and they let the debtor to keep some or all of their property and to use future earnings to pay off creditors.

Chapter 15 This chapter deals with cross-border insolvency.

Among these, the most common Bankruptcy chapters being filed are chapter 7, chapter 12, and chapter 13.

Chapter 7 bankruptcy:

Chapter 7 bankruptcy is the most common form of bankruptcy in the United States. In this process, the debtor liquidates assets, with creditors collecting the funds from the sale of the assets. At the end of this process, the majority of the debtor's debts are discharged, allowing him or her a fresh start. In addition to being used by individuals, chapter 7 bankruptcy can also be utilized by businesses. It is wise to consult with an attorney before committing to a bankruptcy filing, Even though the professional fees for the consultation may be high, there may be an alternative which has not been considered. A professional consultation can also suave the way for a bankruptcy filings, if a debtor decides to continue with bankruptcy proceedings.

Chapter 12 bankruptcy:

The chapter 12 bankruptcy is act as a way for family farmers or fishermen to set up a plan for repaying debts. It is carried out over a period of not less than three and not more than five years, unless otherwise ordered by the judge presiding over the case. It is a good idea to hire an experienced bankruptcy attorney while filing chapter 12 bankruptcies, since there are numerous documents necessary to compile, and improper or missing pieces of information can delay the proceedings. If the debtors work with a professional to get relief from excessive business debts, their family business can continue to thrive.

Chapter 13 bankruptcy:

It often termed as "wage earner's law" works just like a periodic payment plan for debts owed to the creditor. These debts are paid off through the earner's wages. Chapter 13 bankruptcy laws state that the debtor can keep their property as long as they do not default somehow on the payments. If they default on the payments, then they will be subject to chapter 7 bankruptcy law and assets will be liquidated to resolve the debt with the creditors.

Above guidelines are just a few of the laws associated with each type of bankruptcy. Other laws can include what debts can be discharged and which cannot, and the creditor's ability to show up at the Bankruptcy hearing. Again, they are laws that are not only in the best interest of the government and creditor, but yours as well.

POST COMMENT

CC Brown Law – All about Bankruptcy Clawback CC Brown Law – Tips to Avoid Stress at Your Bankruptcy Hearing CC Brown Law – Basics of a Personal Bankruptcy CC Brown Law – Consequences of Bankruptcy on Joint Property CC Brown Law – Planning Ahead for Asset Protection in Bankruptcy US Government, Going Paperless Help With How To Make The Law Of Attraction Work For You Protecting Yourself if Someone Steals your ID Card or Personal Information Neocons, Teabaggers And Chickenhawks - Saul Alinsky And The Demonization Of Political Opponents Centering on Academic Law Transcription Political Correctness & the War on Facts Getting Your Perfect Law Job in Manchester Why Do I Need a NY Immigration Attorney?