Every country has its own version of bankruptcy laws. For Wikipedia's definition of bankruptcy click here . Here in Texas, bankruptcy law can be complex. However, keep in mind that according to the United States Bankruptcy Law, the primary purposes of bankruptcy laws are:
In general terms, bankruptcy is a process regulated by federal law which provides debtors-individuals and corporations-with a legal way of seeking relief from their creditors. If you file for bankruptcy, the court protects you from your creditors and releases you from the need to pay off many, but not all, of your debts. But the court can also decide to sell property that belongs to you and use their proceeds to pay off some of the money you owe. Selling property, or assets, to pay off debts is called liquidation. At the end of the bankruptcy process, those debts that are eligible are canceled, or discharged, meaning you no longer have any liability to pay them. There are several kinds of bankruptcy. Some apply to individuals, while others are more suited to businesses.
If you are filing as an individual or as the sole proprietor of a business, you may file for either Chapter 7 or Chapter 13, or chapter 11. chapter 11 is business bankruptcy. Chapter 7 bankruptcy is intended to wipe out unsecured debts such as credit card debts, personal debts or loans, unsecured business loans and utility debts. This chapter allows individuals to free of their debts and get a fresh new start. In addition you can still own most of your most important assets such as your home and/or cars. Best candidate for Chapter 13 is a person whose income is over the median income who are behind in their house and/or car payments but still wants to keep their assets. Other types of bankruptcy such as Chapter 11 and Chapter 12, are more commonly used by businesses or large companies, and offer fewer advantages for individuals. In all cases, there are certain criteria you have to meet to be eligible to file for each particular type of bankruptcy.
Chapter 7 Bankruptcy:
In a chapter 7 bankruptcy, with a few exceptions, you will get all of your debts discharged (NEVER HAVE TO PAY IT BACK). We will retreive your credit report for you at no additional charge. Unlike many other firms who just gives you a bankruptcy questionnaire for you to fill out without any assistance, we will help you with the bankruptcy questionnaire and go over all the details with you. Please keep in mind that certain debts are nondischargeable such as student loans and secured debts, such as your car debts, your debts for your furnishings or products you bought at places such as Nebraska Furniture mart, Conn's, or other places where you purchased them with their in store credit. However, we will guide you throughout the entire bankruptcy procedure and give you informed bankruptcy advice, so that you can feel relieved and concentrate on other important matters, such as spending more time with your family.
Which Properties Do I Get To Keep: