Bankruptcy is a federal court procedure involving a person or business that is unable to repay outstanding debts. Bankruptcy filings fall under one of several chapters of the Bankruptcy Code: Chapter 7, which involves liquidation of assets; Chapter 11, which deals with company or individual reorganizations; and Chapter 13, which allows you to keep your property while repaying some or all of your debt under a reorganization plan, within three to five years.
The bankruptcy process begins with a petition filed by the debtor, which is most common, or on behalf of creditors. The debtor can keep “exempt property”, such as clothing, household goods, an older car, or the tools of their trade or profession, and any remaining assets may be used by the bankruptcy trustee to repay a portion of the outstanding debt. The amount of property that a debtor may exempt varies from state to state. Some debts may not be discharged, such as student loans, child support obligations, some tax bills and criminal fines, even though the debtor is generally discharged from other debts.
| Fill In PDF | Online Questionnaire | Information |
