Bankruptcy Law – The Basic Principles of Bankruptcy
Bankruptcy is a legal process that provides debt relief for individuals and entities that are unable to pay their debts. This procedure is often imposed by a court order, but the debtor may initiate it as well. Listed below are the most common types of bankruptcy and how they are handled. The bankruptcy process can be difficult, but following some basic guidelines can help you navigate it successfully. This article outlines the basic principles of bankruptcy law and provides information on how to file for Chapters 7 and 13.
Chapter 7
A typical Chapter 7 bankruptcy filer has a significant amount of debt, usually credit card or unsecured bills, and a few assets. This type of bankruptcy liquidates nonexempt assets to eliminate most of the debt. There are certain types of debt that are ...