Bankruptcy Law
The stated goal of federal bankruptcy law is to provide the honest debtor with a fresh start. This is not an easy decision and an individual or a business owner should first exhaust all other options. There are different types of bankruptcy proceedings so it is important to understand advantages and disadvantages of each.
Chapter seven is available to individuals, married couples, corporations and partnerships. In this proceeding, individual debtors may seek a discharge of their unsecured debts. Chapter 7 is a liquidation proceeding, which means that the debtor's non-exempt assets, if any, are sold or otherwise liquidated and the proceeds are distributed to creditors according to the priorities rules established by the federal bankruptcy code.
Chapter Eleven Bankruptcy is generally used by corporations or partnerships. This chapter of the Bankruptcy Code provides a process for rehabilitating the company's faltering business and usually proposes a plan of reorganization to keep its business alive and pay creditors over time. Bankruptcy could provide breathing space needed to sell a business as a going concern or to preserve the value of its assets. Sometimes the company successfully works out a plan to return to profitability; sometimes, in the end, it liquidates.
Proceedings under Chapter Thirteen are available to individuals or sole proprietors and involve the borrower proposing a plan for repaying a portion of the debt in installments from the borrower's income. It protects the debtor from collection action during the case and discharges any unpaid balance of dischargeable debts at the end of the plan.
Chapter seven is available to individuals, married couples, corporations and partnerships. In this proceeding, individual debtors may seek a discharge of their unsecured debts. Chapter 7 is a liquidation proceeding, which means that the debtor's non-exempt assets, if any, are sold or otherwise liquidated and the proceeds are distributed to creditors according to the priorities rules established by the federal bankruptcy code.
Chapter Eleven Bankruptcy is generally used by corporations or partnerships. This chapter of the Bankruptcy Code provides a process for rehabilitating the company's faltering business and usually proposes a plan of reorganization to keep its business alive and pay creditors over time. Bankruptcy could provide breathing space needed to sell a business as a going concern or to preserve the value of its assets. Sometimes the company successfully works out a plan to return to profitability; sometimes, in the end, it liquidates.
Proceedings under Chapter Thirteen are available to individuals or sole proprietors and involve the borrower proposing a plan for repaying a portion of the debt in installments from the borrower's income. It protects the debtor from collection action during the case and discharges any unpaid balance of dischargeable debts at the end of the plan.
You may contact any of the following attorneys below to assist you at any time.
