Business and Consumer Bankruptcy Law is the fastest way a person can settle his or her debts. The goal of bankruptcy is for the debtor to pay off as much debt as possible and then discharge the rest. Discharge means that the debtor will no longer be legally obligated to make payments on those debts. Businesses, as well as individuals, can file for bankruptcy.
There are different types of bankruptcy. Each type of bankruptcy is referred to as a "chapter" of bankruptcy, so named because each chapter of the Bankruptcy Code deals with a different bankruptcy. Each chapter of bankruptcy requires that the debtor repay a portion of his or her debt to creditors, although the manner in which creditors are repaid will differ between each type of bankruptcy.
In Chapter 7, debtors sell their non-exempt assets to pay off creditors. Chapter 13 requires debtors repay creditors over a three or five year period. Chapter 11 is for corporations or wealthy individuals. Chapter 12 is bankruptcy for farmers or professional fishermen.
Consumer Bankruptcy (55+ Articles)
Business Bankruptcy (5+ Articles)
Bankruptcy can be a complicated process. A bankruptcy lawyer can recommend which chapter of bankruptcy you could file and how you should best settle your debts.
Last Modified: 09-19-2016 11:58 AM PDTLaw Library Disclaimer
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