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more_legal_areas bankruptcyAttorneys spend years learning all of the aspects of bankruptcy law, and if you as an individual, a married couple, or a business owner are considering filing for bankruptcy, it's imperative that you consult an experienced bankruptcy lawyer.
The Fundamentals
The bankruptcy laws in the U.S. are laid out in Title 11 of the United States Code. There are also laws concerning bankruptcy in other parts of the Code, such as those involving taxes and the Internal Revenue Service. State laws regarding property also apply in many bankruptcy cases.
The complexity of bankruptcy laws can't be ignored, but it's helpful to have at least a grasp of the fundamentals. Such an understanding will help you prepare yourself to make some decisions about whether and how you will file for bankruptcy.
Chapter 7: Liquidation
For individuals and married couples who are considering bankruptcy, a Chapter 7 bankruptcy may be the appropriate option. In a Chapter 7, a trustee is appointed to collect all the "non-exempt" property of the debtor(s), sell it, and distribute the proceeds of the sale to the creditors (the people and companies to whom the debtors owe money). This is referred to as liquidation. The debtor's essential property, such as a home and a car for getting to work, are exempt from the liquidation.
Chapter 13: Reorganization
Chapter 13 is a different type of bankruptcy for individuals and couples. It allows the debtor(s) to keep all or at least most of their property and to pay creditors from future earnings. The debtor files a repayment plan with the court, agreeing to the terms of the repayment of debts over a specified period, generally three to five years.
Changes in the Bankruptcy Laws
Some new bankruptcy laws have been put into effect in recent years, in part as a way to reduce the misuses and abuses of bankruptcy. For example:
Talk with a Bankruptcy Attorney Today
If you are under severe financial stress, whether as an individual or as a business owner, a bankruptcy may be the appropriate step for you to take. It's essential that you discuss your circumstances with an experienced bankruptcy attorney „Ÿ contact a bankruptcy lawyer in your area today.
The number of Americans filing for bankruptcy is growing, even as changes in the law have made it more difficult and more expensive for people to file.
According to Automate...