Bankruptcy is a legally stated inability of an individual or organizations to pay their creditors whereas personal bankruptcy is a procedure which allows an individual to declare bankruptcy. Bankruptcy laws provide for the development of a plan that allows a debtor, who is unable to pay his creditors, to resolve his debts through the division of his assets among his creditors.
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The bankruptcy cases cannot be filed in the state court but can only be filed in the bankruptcy court. The motive of a bankruptcy law is to help people who can no longer pay their creditors get a fresh start by creating a repayment plan. In addition, through reorganization or liquidation, Bankruptcy laws help protect businesses in trouble and provide orderly distributions to the business creditors. Before filing for bankruptcy, you must be aware of most common bankruptcy questions to ask and the basics of how to file bankruptcy. Basics provide information on different aspects of the federal bankruptcy laws. The bankruptcy laws have been categorized in chapters. Chapter 7 bankruptcy cases are commonly referred to as liquidation cases and may be filed by an individual, corporation or a partnership whereas chapter 11 bankruptcy is known as “reorganization”. The chapter 12 bankruptcy is the one which offers bankruptcy relief to those who qualify as farmers and the chapter 13 bankruptcy is the debt repayment chapter for individuals with regular income and whose debts do not exceed $ 1000000. While declaring bankrupt can be last option for some yet there are alternatives that can be adopted as a means to come out of debt trap without actually filing chapter 7 or chapter 13 of bankruptcy. A Chapter 7 filing means that the business intends to sell all its assets distribute the proceeds to its creditors and then cease operations.
Tips to file a bankruptcy:
- Do proper research before filing the case
- Make sure to include all of your eligible debt
- Debts like student loans, Tax bills, etc. can not be discharged. However in most cases organization will work for you.
- In case you have filed ‘automatic stay’ your creditors can not contact you and in case they do so they are breaking the law. You can notify your lawyer regarding this.
- Although bankruptcy stays on your credit report record for up to 10 years, you will be able to re-establish credit. There are many companies who specialize in helping people to re-establish their credit. The fees may be higher, but in the long run, this can help you (if you are responsible).
- Your employer and landlord will not be informed of bankruptcy unless they are your creditors. However if somebody is keen on finding, he can do so by tracking down public records.
- Keep all your Bankruptcy Filing records for at least a year after filing, including all back up documentation.
- The parties to which you owe debts can decide to challenge the discharge of a particular debt or of your entire discharge any time from the day you file the case through the 60th day after the date first set for the meeting of creditors. This almost never happens, because the burden of proof is almost always on the creditors, and often their insurance will cover a discharge of debt.
- Make sure your Lawyer has good capability and experience to handle your case and you feel comfortable with him/her.
Area We Serve
Bankruptcy Lawyer in British Columbia
- Langley Township
Bankruptcy Lawyer in Vancouver
- Fernie, BC
- Nelson, BC
- Squamish, BC
- Ucluelet, BC
- Coombs, BC
- Castlegar, BC
- Cowichan Bay, BC
Bankruptcy Lawyer in Surrey
- North Surrey
- South Surrey
- Port Mann
- Pitt Meadows
- New Westminster
- White Rock