Bankruptcy is suitable for individuals, companies and other different entities to apply for bankruptcy to eliminate debts or repay debts by installments. The procedure of bankruptcy cases is governed by federal law. The court will use state law to determine the impact of bankruptcy on the debtor's power. Once the bankruptcy application is filed, the automatic stay will take effect, all debt collection actions need to be terminated, and creditors are not allowed to collect debts and collect money from the debtor.
In case of financial problems of the company or individual, timely turn to the professional lawyer team to help you preserve the company or personal assets to the greatest extent. Please feel free to contact us at any time! We will provide you with a full range of bankruptcy legal aid.
The U.S. bankruptcy law belongs to the U.S. federal law, and the procedures for bankruptcy cases are governed by the U.S. federal law. The courts of the U.S. states generally do not hear bankruptcy cases. There are four main chapters of the U.S. Federal Bankruptcy Law concerning bankruptcy, and companies or individuals in the United States are protected by bankruptcy law. The seven chapters and the thirteenth chapter apply to individuals, and the eleventh chapter is designed for enterprises.
1. Chapter 7 : Liquidation of the non-exempt property owned by the debtor by the bankruptcy trustee to repay the creditor to the maximum extent. The property exemptions vary from state to state in the United States. In most cases, debtors can keep their main housing, part of their personal property and cars. Part of the debt that cannot be repaid through liquidation is forgiven. The income generated after filing for bankruptcy is not part of the bankruptcy, and the debtor can keep these incomes.
2. Chapter 11 : This bankruptcy involves the reorganization of the debtor’s business, debts and assets. The debtor can continue to operate and own all assets, while providing a restructuring plan to pay off the debt to the creditor. If the debtor fails to submit a reorganization and debt repayment plan within the time limit, the creditor can submit his own plan.
3. Chapter 13 : Similar to the reorganization and bankruptcy of Chapter 11, but Chapter 13 only applies to individuals. The debtor still owns and disposes of its assets, but he must make a plan to pay off the debt within three to five years. Part of the debt may be forgiven, depending on the debtor’s income. There are also restrictions on the amount of debt involved.
The goal of Blumsack & Canzano, P.C. is to simplify the bankruptcy process as much as possible for our clients. According to the type and extent of your case, our bankruptcy lawyers provide services including:
1. Help you understand the eligibility requirements for filing for bankruptcy and how different types of bankruptcy apply.
2. Submit a petition to the U.S. Bankruptcy Court.
3. At the creditors meeting, negotiate with the creditors.
4. Cooperate with financial experts to help you master your finances and start over.