Bankruptcy law is always changing. Some states have particular laws governing bankruptcy. States will, however, make use of the federal law in the event that there is a conflict between the federal law and the state law. This implies that one can only file for bankruptcy in their state and not in another state. Although, in some instances, one may file for bankruptcy in a foreign state, it is extremely challenging in many instances.
Businesses and consumers may fall into three main areas of bankruptcy. You can use the 13th Chapter of the law of bankruptcy in the event that you got some resources that you can use in paying your debts. Basically, if you can be able to mobilize resources that can help you in debt payment in the next 3 to 5 years, you will use Chapter 13 of the bankruptcy law. It is imperative to note that although this is still viewed as bankruptcy the debts of the consumers are not eliminated. There is, however, court intervention that is aimed at ensuring that the consumers get more time to pay the debts that they owe. Once the court rules in favor of the debtors to allow him or her more time to pay the debts, the creditors must comply.
When people think of bankruptcy the most common thing that comes into their minds is the Chapter seven of bankruptcy law. This is quite a drastic kind of bankruptcy. In some instances, this form of bankruptcy may demand that one liquidates their assets to pay off their debts. The last one is Chapter 13 bankruptcy. This bankruptcy is used by people to restructure their debt. Businesses mostly use this form of bankruptcy. It is however, essential to note that the court only protects you during reorganization, but it does not eliminate your debt.
Irrespective of the chapter you are planning to file, it is imperative to note that some kinds of monetary obligations will not be discharged. Although you may think that filing bankruptcy may benefit you, some form of debts may hinder you from enjoying many benefits. It is common for someone to think that reading the law can help them out of their debts. The fact is that it is not easy to do so. You need the assistance of a bankruptcy lawyer to make the right decision as far as bankruptcy is concerned. The lawyers have the right knowledge about the law, and thus they are in a position to make the right decision. Since the lawyer knows the law inside out, it is possible for them to use it to benefit you. The attorney will also consider the underlying factors in your situation and help you make the ideal decision concerning your case. You simply need to ensure that the lawyer you choose is reputable.