In today’s uncertain economic environment, more people are experiencing increased outsourcing, higher interest rates, heightened consumer prices, increased underemployment; and elevated unemployment can all result in people owing more money than they have coming into their respective households. This can lead to both professional and personal problems. To rectify this situation and have a fresh start in life, learn about bankruptcy and debt.
When a person has a limited amount of money coming into his household, he or she can be forced to choose between paying bills and providing food for the family. To stop debt from increasing, a person can file for bankruptcy. This legal status allows insolvency to be converted into a way for a person to pay some or all of his or her debts. The procedure is done through a federal court. Article I, Section 8, of the United States Constitution, gives Congress the legal right to create and pass laws that are fair and consistent in nature. A United States bankruptcy judge oversees all cases and is the person who makes the final decisions in bankruptcy cases.
There are several types of bankruptcy, as outlined in the Federal Rules of Bankruptcy Procedure. The rules and regulations in these laws, along with local laws, govern how bankruptcy proceedings will be carried out. There are six types of bankruptcy for debtors. A debtor can be an individual or business entity, depending on the type of bankruptcy filed. Educating yourself about bankruptcy and debt can help you live a better life.
Chapter 7 bankruptcy is the type of bankruptcy that allows for the liquidation of a debtor’s assets. A trustee will be in charge of a debtor’s assets. Some assets will be sold, and the cash garnered will be distributed to creditors. There are certain types of assets that are exempt from this liquidation. Chapter 13 bankruptcy allows a person with a regular means of earning money to create a repayment plan. This plan must be approved by the bankruptcy court.
By learning about bankruptcy and debt, you can have a fresh start in life. There is no shame in this, and it can elevate your standard of living. For more information on bankruptcy, bankruptcy services, of debt relief services, get in touch with a bankruptcy lawyer. Doing this will enable you to use get out from underneath a debt-load that is negatively affecting your life.
