Debt can overpower your home and lifestyle choices. A bankruptcy filing can give back the control of your life to you by facilitating a way out through a legal process. Bankruptcy laws allow you to forgo debt completely or restructure it using a realistic repayment plan.
Bankruptcy attorneys specialize in cases involving debt restructuring and bankruptcy filing for individuals and businesses. That is why it is of utmost importance to hire a good bankruptcy lawyer when considering a settlement. For that, you will need a basic understanding of the US Bankruptcy provisions.
It is the legal term for a situation where an individual or enterprise cannot repay their outstanding debts. The process for bankruptcy starts with a petition from the debtor or on behalf of the creditors. Bankruptcy gives a fresh start to individuals and businesses by giving them access to consumer credit and helps creditors get back a recoverable portion of the debt.
In the United States, all bankruptcy cases are handled by federal courts, chaired by a bankruptcy judge. There are several types of bankruptcy filings you can go for.
This type of bankruptcy filing helps individuals or businesses in disposing of unsecured debts, such as credit cards and medical bills. If the debtor owns nonexempt such as second homes and vehicles or valuable family heirlooms etc. the debt has to be repaid partially or fully (as can be covered) by sale of those assets. In case, the debtor has no other valuable assets and owns only exempt property i.e. household goods, clothing, tools of trade and a personal vehicle (of a certain value), they are exempted from repayment of the unsecured debt.
This bankruptcy provision is mainly opted for by businesses, where the goal is to make the business profitable again through reorganization of management and operations. Filing under this category enables businesses to make strategies for achieving profitability, cut costs and generate new revenue streams. Chapter 11 bankruptcy is monitored by the court to make sure that a business is meeting its debt servicing obligations.
Individuals who earn way above the average income can file for bankruptcy under Chapter 13. It allows individuals and businesses to restructure their debt through a workable repayment plan. In exchange for this, the debtors can keep their property, including nonexempt assets.
If you are apprehensive about filing for a bankruptcy or don’t know where to start, call us today. We can help you out with a free consultation. Also, here are some common bankruptcy myths you should know about.
Kenneth Halpern is a renowned bankruptcy attorney in Nassau County. He has been helping people of Nassau County with bankruptcy protection services for over 35 years now. Kenneth is a highly regarded in the legal circles of Nassau County as a seasoned attorney for strategic financial advice.
If you are looking for bankruptcy protection to save your home and protect your family from creditor harassment, connect with Kenneth today. Kenneth has extensive knowledge of the federal bankruptcy laws and can offer sound legal counsel for your bankruptcy proceedings.
Get a free consultation from our Nassau County bankruptcy attorney, fill the contact form on our website or call our law office at (516) 222-1199 or by send an email with case details to email@example.com