Do You Lose Everything in Bankruptcy?
Contrary to most people's fear you do not lose everything in a bankruptcy. You may keep your house and your car if you decide to, as long as the house is not in foreclosure, which is another proceeding that requires different responses. You also can keep all your personal effects. If you business is also involved you definitely need a competent Utah Bankruptcy Attorney to help you decide to file a Chapter 7, Chapter 11 and Chapter 13.
Bankruptcy law was established to give people another chance and to handle the process of repaying creditors if there are assets that the bankruptcy determines can be used to pay them.
There are three kinds of bankruptcies. These are found in the Federal Bankruptcy job under three different chapters – Chapter 7, Chapter 11, and Chapter 13. Bankruptcy law is Federal law so you must file your petition for bankruptcy with a Federal court. There are Federal Courts located in all states, so if for example you live in Chicago, you would find a Utah Bankruptcy Attorney who would represent you in the Federal court located in Utah.
Chapter 7 is a complete and total liquidation of all assets that are not exempt. In many cases there are no assets and this is the proceeding that wipes the slate clean and is often used for personal bankruptcy. Chapter 11 is a reorganization of the debts where some are discharged or reduced and some are still paid by the bankruptcy trustee. This is often used by companies that want to keep the business going, but need relief from debt. And Chapter 13 is a reduction of debt but not a complete discharge of debt and but the debtor makes a plan that must be approved by the bankruptcy court to pay off the debt over a number of years.
When choosing between the different kinds of bankruptcies that are allowed a person needs to be very careful and have good advice about all the specifics from a Utah Bankruptcy Attorney. This is the way to avoid troubles and complications that may come up after the bankruptcy proceedings so it is important to understand all the options and upon good advice from a competent attorney to choose whatever bankruptcy chapter is best for your personal and business situation.
Bankruptcy law was established to give people another chance and to handle the process of repaying creditors if there are assets that the bankruptcy determines can be used to pay them.
There are three kinds of bankruptcies. These are found in the Federal Bankruptcy job under three different chapters – Chapter 7, Chapter 11, and Chapter 13. Bankruptcy law is Federal law so you must file your petition for bankruptcy with a Federal court. There are Federal Courts located in all states, so if for example you live in Chicago, you would find a Utah Bankruptcy Attorney who would represent you in the Federal court located in Utah.
Chapter 7 is a complete and total liquidation of all assets that are not exempt. In many cases there are no assets and this is the proceeding that wipes the slate clean and is often used for personal bankruptcy. Chapter 11 is a reorganization of the debts where some are discharged or reduced and some are still paid by the bankruptcy trustee. This is often used by companies that want to keep the business going, but need relief from debt. And Chapter 13 is a reduction of debt but not a complete discharge of debt and but the debtor makes a plan that must be approved by the bankruptcy court to pay off the debt over a number of years.
When choosing between the different kinds of bankruptcies that are allowed a person needs to be very careful and have good advice about all the specifics from a Utah Bankruptcy Attorney. This is the way to avoid troubles and complications that may come up after the bankruptcy proceedings so it is important to understand all the options and upon good advice from a competent attorney to choose whatever bankruptcy chapter is best for your personal and business situation.