Debtors can file for bankruptcy if they have has little or no capability of paying their creditors the full amount they owe them. The bankruptcy starts when the debtor files a case in the court of law and based on how the case is ruled out, their assets are evaluated to determine if their value is worth enough amount to be able to repay all debts. Bankruptcy, however, involves more that and it is good that you have the General Bankruptcy Information at your fingertips if you really want to benefit fully from it. Read on to find more about bankruptcy.
Bankruptcy is divided into three major chapters, and they are:
Chapter 11
It is also referred to as reorganization chapter. This chapter allows debtors to rearrange financial, business or personal affairs even without necessarily liquidating all their assets. It’s of importance to debtors since they can regain from losses.
Chapter 13
This is efficient for debtors with regular income. A debtor agrees to pay a portion of the debt from their future income to the bankruptcy court trustee. In addition, the debtor is protected fully under this chapter.
Chapter 7
It is also called a liquidation chapter. You can employ this chapter if you don’t have even the slightest hope to repay your debts. In this chapter, your assets as a debtor is liquidated, that is, the asset is sold strictly for cash payment terms by the trustee and later payments are made to your creditors .
Having mentioned a trustee earlier, finding one to most could be a challenge. However, you can employ the following tips to find one:
* Court Electronic Records
* Visiting any courts Multi-Court Voice Case Information System
* A public terminal in divisional offices. This is only where the case at hand is either closed or pending.
A good lawyer will help you with the General Bankruptcy Information about the whole process of filing a bankruptcy case. As a debtor, you should have a creditor’s matrix. This is a detailed list of all the creditors in your case. It is important to file it properly in the appropriate format for it to be used in the automatic noticing system of the court.
