Bankruptcy laws help people who can no longer pay their creditors get a “fresh start” – by liquidating or selling assets to pay their debts or by creating a repayment plan. Also, Bankruptcy laws can protect troubled businesses and provide for orderly distributions to business creditors through reorganization or liquidation.
Most cases are filed under the three main chapters of the Bankruptcy Code – Chapter 7 Bankruptcy , Chapter 11 Bankruptcy and Chapter 13 Bankruptcy. Federal courts have exclusive jurisdiction over bankruptcy cases; a bankruptcy case cannot be filed in a state court. Call 954-320-6940 or 1-888-828-9008 for a free consultation.
The primary purposes of the laws of bankruptcy are:
Give an honest debtor a "fresh start" in life by relieving the debtor of most debts.
- Repay creditors in an orderly manner to the extent that the debtor has property available for payment.
Some bankruptcy cases are filed to allow a debtor to reorganize and establish a plan to repay creditors, while other cases involve liquidation of the debtor's property. Click here for more information on the Bankruptcy Process
You or your business can declare bankruptcy once you have ascertained that it has become impossible to pay off your creditors. It can give you a chance to start over from a financial point of view, as most debts are relieved after bankruptcy as been filed.
Chapter 7 bankruptcy or liquidation bankruptcy means that your “estate” – i.e., your assets is sold in order to pay off your creditors. A reorganization bankruptcy can also involve the selling of assets, but more often than not you can retain a majority of your assets while your creditors’ needs are assessed.
Reorganization bankruptcies can be filed under the following guidelines:
Chapter 9 – Municipalities
Chapter 11 – Businesses and individuals with many assets
Chapter 12 – Farmers, Fisherman
Chapter 13 – individuals with Steady Income
Chapter 15 – international Cases