Filing for bankruptcy can help a person rule out a debt or make a plan to pay it off. A bankruptcy case normally begins when the debtor files a petition. Bankruptcy basics · Chapter 7 · Filing for bankruptcy without a lawyer · Chapter 13 Filing for bankruptcy can help a person rule out a debt or develop a plan to settle it. A bankruptcy case normally begins when the debtor files a petition with the bankruptcy court.
The petition can be filed by an individual, by the spouses together, or by a corporation or other entity. People can file for bankruptcy without a lawyer, which is called pro se filing. However, it is highly recommended to seek the advice of a qualified lawyer because bankruptcy has long-term financial and legal results. Bankruptcy is a legal process, so it begins when the debtor files a petition with the appropriate bankruptcy court.
This is usually achieved with the help of a lawyer who specializes in these types of cases. Bankruptcy is a legal process for individuals or companies that cannot pay their outstanding debts. You can file for bankruptcy in one of two main ways. The most common route is to declare bankruptcy voluntarily.
The second way is for creditors to ask the court to order bankruptcy. If you can't file for Chapter 7 bankruptcy, or if you have some money to pay creditors and there are assets you want to keep, Chapter 13 bankruptcy may be an option for you. You can file for bankruptcy on your own, or you can find a lawyer who specializes in bankruptcy, which most experts consider to be the prudent path to follow. Find out if bankruptcy protection is right for you, what are the differences between types of bankruptcy, when to file it, and what to expect.
Companies typically declare bankruptcy under Chapter 11, whose objective is to reorganize, stay in business and become profitable again. The bankruptcy process begins with a petition filed by the debtor, which is most common, or on behalf of creditors, which is less common. Filing for bankruptcy can help release you from your legal obligation to pay your debts and save your home, your business, or your ability to function financially, depending on the type of bankruptcy petition you file. When a bankruptcy application is filed with a court, creditors are notified and can file objections if they wish.
It can be confusing to distinguish between the different types of bankruptcy and to know when it's appropriate to declare one. Any decision in federal bankruptcy cases is made by a bankruptcy judge, even if the debtor is eligible to file an application and if their debts should be forgiven. Pro litigants are expected to follow the rules and procedures of federal courts and should be familiar with the United States Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, and the local rules of the court in which the case is filed. The American Bankruptcy Institute states that 95.3% of people who file for Chapter 7 bankruptcy are successful.
From there, the procedure depends on whether you have filed for protection under Chapter 7 or Chapter 13 of the Federal Bankruptcy Code. In theory, the possibility of declaring bankruptcy benefits the overall economy by allowing individuals and businesses a second chance to access credit and by providing creditors with a portion of the debt repayment.
