Thursday 22 May 2014

Get to know the Bankruptcy Filling process & Hire Experienced US Attorney for better Legal Help


                Bankruptcy laws are designed to assist people who no longer have the capability to pay their creditors. Those who file for a US bankruptcy petition can get another chance to pay their debt through liquidating assets or come up with a different repayment plan.

                Troubled businesses can also file for US bankruptcy petition to make a more organized system through liquidation or reorganization to pay their creditors.

                  Only Federal courts have jurisdiction over cases involving bankruptcy laws, which is why you can’t file a bankruptcy case in a state court.

                 To start a bankruptcy case, the debtor should first file a petition with the bankruptcy court. The petition could be filed by an individual, a corporation, a couple, or other entity.  The petition includes the debtor’s statement listing of his or her income, assets, liabilities, and all of the names and addresses of his or her creditors as well as the amount of money he or she owes each respectively.

               When the debtor has filed the petition, debt collectors can’t do any action to collect the debt, even calling the debtor. The debtor’s property will also remain safe from collection. The creditors also can’t file or continue a lawsuit against the debtor.

                 After filing for bankruptcy, the clerk of court will notice the creditor that the debtor already filed for bankruptcy.

             There are bankruptcy cases that liquidate the property of the debtor, while others file for bankruptcy to find an alternative repayment scheme to their creditors.

            Liquidation usually leads to discharge of the debtor from the debts, because his or her property does not amount to his or her debts to the creditors. Since, there is no other way for him or her to pay the debt, the debtor gets absolved from it. There are other cases when bankruptcy case litigation can arise from disputes after the liquidation of the debtor’s properties.

                  To make sure that you get the most from your US bankruptcy petition, it would be best to consult or hire an attorney.

 


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