Bankruptcy - Considering it?
Consumer debt is at an all time high and many families face the unfortunate challenge of being burdened with repayment at interest rates that are currently on the rise. For some, the answer lies in bankruptcy court. Ensure your financial recovery by getting help from a professional. eLegalPlans can provide you and your family expert legal protection while keeping your legal fees affordable. Recent changes in bankruptcy law have made it even more important that you receive support from a bankruptcy attorney; enroll today and speak to a lawyer that can protect your interests while you save money. Money that can help get a new start.
In the United States, bankruptcy protection allows a debtor, who has a significant amount of money owed relative to his or her worth and therefore is unable to pay his creditors, to have the debts forgiven through the division of the assets among his creditors. By adhering a specific plan or order of liquidation, the interests of all creditors can be treated fairly. Certain bankruptcy rules allow a debtor to reorganize and use revenue from future business to pay the obligation off completely. One additional purpose of bankruptcy law is to permit certain debtors to discharge their financial obligations and ultimately, after whatever assets there are to be distributed, have a clean slate.
Bankruptcy proceedings are supervised by and litigated in the United States Bankruptcy Courts. These courts are a part of the District Courts of The United States. The United States Trustees were established by Congress to handle many of the supervisory and administrative duties of bankruptcy proceedings. Proceedings in bankruptcy courts are governed by the Bankruptcy Rules which were promulgated by the Supreme Court under the authority of Congress. There are two basic types of Bankruptcy proceedings. A filing under Chapter 7 is called liquidation. It is the most common type of bankruptcy proceeding. Liquidation involves the appointment of a trustee who collects the non-exempt property of the debtor, sells it and distributes the proceeds to the creditors. Bankruptcy proceedings under Chapters 11, 12, and 13 involves the rehabilitation of the debtor to allow him or her to use future earnings to pay off creditors. Under Chapter 7, 12, 13, and some 11 proceedings, a trustee is appointed. In every case, qualified legal representation from a Bankruptcy attorney is essential to protecting the Debtor.
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