Bankruptcy
Bankruptcy is the legal method for a debtor to discharge or relieve himself of the debts that he owes. While no debtor is guaranteed a total discharge of his debt, most debtors who file for bankruptcy are given such relief. One of the primary purposes of the Bankruptcy Act is to relieve the honest debtor from the weight of oppressive indebtedness and to provide the debtor with a fresh start.
Chapter 7 bankruptcy is also known as liquidation. In the typical Chapter 7 bankruptcy, a trustee collects the non-exempt property of the debtor, converts the property to cash, and distributes the cash to the creditors. In contrast, Chapters 11, 12 and 13 of the Bankruptcy Code allow for debtor rehabilitation. In those cases, the creditors look to the future earnings of the debtor, not the current property of the debtor. Under rehabilitation, the debtor will generally retain his assets and property and make payments to creditors pursuant to a court approved plan.
More Information
Various Bankruptcy Procedures For Consumers How Does The Bankruptcy Process Work Bankruptcy Terms What Property Can I Keep And What Will I Lose In A Chapter 7 Filing?
If you or a loved one is in need of legal assistance, call Smith & Smith at 1-999-999-9999 or submit an online questionnaire. The initial consultation is free of charge, and if we agree to handle your case, we will work on a contingency fee basis, which means we get paid for our services only if there is a monetary recovery of funds. In many cases, a lawsuit must be filed before an applicable expiration date, known as a statute of limitations. Please call right away to ensure that you do not waive your right to possible compensation.
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