Bankruptcy law is a tricky area of the law, and it can be not easy to know where to start. If you need help with bankruptcy law, we have put together this guide for you.
What is Bankruptcy Law?
The Bankruptcy Law is a federal law that governs the process of applying for bankruptcy. This includes all types of personal and business bankruptcies and individuals filing under Chapter 11 or 13.
When you file for bankruptcy, you are asking a court to declare that you will be able to work with creditors and repay some of what is owed despite your current financial situation or debt load. This means filing for Chapter 11 bankruptcy can help protect assets while allowing the business owner time to restructure their debts
Reasons for Filing Bankruptcy
- Debt Relief
Debt relief is what most people think of when they hear the word “bankruptcy.” However, filing for bankruptcy can help individuals with overwhelming debt get a fresh start by allowing them to eliminate or repay some of their obligations.
- Protect Assets
Filing for bankruptcy can help individuals protect their property, such as a home or car, by allowing them to keep it while they work out repayment terms with creditors.
- Stop Foreclosure
Filing for bankruptcy can help individuals avoid Foreclosure by giving them more time to work with creditors and come up with a plan.
- Stop Repossession
Filing for bankruptcy can help individuals avoid Repossession by giving them more time to develop repayment terms.
Who Can File for Bankruptcy?
Almost anyone can file bankruptcy if they meet the requirements. However, some people are ineligible to receive a discharge of their debts through Chapter 13 or Chapter 11 bankruptcy. This means that although you may be eligible, your creditors will still have the ability to attempt collection after filing for bankruptcy.
How Does Filing Work?
Records Required: You must submit certain forms and documents with your petition, including tax returns from the past two years (or three years in case of Chapter 11) bank statements covering the six months before you file any pay stubs since you filed your last taxes assets list liabilities list statement on monthly expenses certified copy of birth certificate courts require additional paperwork as well.
A bankruptcy filing is a complicated process, but an experienced attorney can help make it easier. If you are considering bankruptcy as an option for dealing with your debts, talk to the experts at your local law office about how Chapter 11 or 13 might work for you.