Posts Tagged ‘list of bankruptcy procedures’

The Basic List Of Bankruptcy Procedures

If there is no way to avoid bankruptcy and you have finally decided to go for it, you must be well aware of the basic list of bankruptcy procedures that you need to follow. If you are going through extreme financial hardship and are neck deep in debt, bankruptcy can provide you an opportunity to give a fresh start to your financial life. However, it is very important for you to keep in mind that the US laws regarding these types of cases are very complex. You should not expect me to provide you all the details in just a few short paragraphs. Even if someone describes it in lay terms, things can be quite trickier to understand. That is the reason why it is always advisable to hire an attorney to represent you in the court. Though the lawyer will perform all the legal formalities on your behalf, it is still advisable for you to have at least a basic understanding what is the process of bankruptcy and what procedures are available out there. Following is a brief overview on it.

Governing Body

The main governing body is commonly termed as “Federal Rules of Bankruptcy procedure”. You can find the copy of those rules free of cost on the official website of the US bankruptcy court. But, the list of bankruptcy procedures described in those copies are very detailed and quite complicated. Still, you must be aware of those sets of regulations the legal requirements of bankruptcy come from.

Bankruptcy Court

It is very important for you to keep in mind that you can file your petition for bankruptcy in your local law enforcement court. In the United States of America, the federal government has established specific bankruptcy courts to handle such cases. These special courts work as separate entities from other regular courts. The judicial officers, judges, and clerks working in these courts are specialized in handling bankruptcy cases only. There are ninety districts in the US, where every state has at least one district (some have more than one), and there is a bankruptcy court for every district. But all these courts follow the same list of bankruptcy procedures as defined under the federal laws.

State Vs Federal Laws

Though the federal bankruptcy laws are applicable in every state of the US, there are specific state laws as well. Some states even offer an option for the residents to either use the federal laws or the state laws. For example, every state has its own property exemption list, which differs from the federal set of exemptions. In the majority of states, you get an option to choose either federal based or the state based exemptions, but there are also many states, where it becomes mandatory for the bankrupt individual to use only the state-specified exemptions. However, despite all this, the basic list of bankruptcy procedures is used as per the federal laws only; the states do not interfere with the basic procedures.

Types Of Bankruptcy

The different types of bankruptcy have been defined under different chapters in the US bankruptcy code. However, there are only two types of bankruptcy that are the most common ones – chapter 7 bankruptcy and chapter 13 bankruptcy. In chapter 7, the court orders to discharge all your debts (except a few ones, such as IRS taxes and student loans) and also orders to liquidate all your assets and properties (except the ones that are protected under bankruptcy exemptions). Your creditors get their payments from the money thus received from the proceeds of the sales of your assets and properties. This way, you end up having just very few of your assets and properties, usually the ones that are considered as the basic necessities of your life, but you also get rid of most of your debts. In chapter 13, on the other hand, there is no risk of losing your assets and properties. The court allows you to continue with your business and orders you to continue making the repayment toward your debts as per a new more affordable repayment plan with more favorable loan term.

Court Appearance

Most of the things in the list of bankruptcy procedures are basically just paperwork, which is a very complicated task. In general, you do not need to appear in person during the court proceedings as long as you have a specialized, duly licensed bankruptcy lawyer to represent your case in the courtroom. However, there can be specific situations when you may have to appear in person in the court. Make sure you provide sincere co-operation to your lawyer all the time because they are the ones who are going to present your views or facts in the court room on your behalf. You must choose a lawyer who is reputable, experienced, charges a reasonable fee, and is someone you are comfortable working with.

Overall, when you have the knowledge of the basic list of bankruptcy procedures, it will help you get mentally prepared in advance.

Custom Search

Basic Things You Must Know About Bankruptcy Dismissal

When you file a petition for bankruptcy and the court rejects your petition on certain grounds, it is legally termed as bankruptcy dismissal. Dismissal means your case is officially closed and that the court will make no further rulings on your case. Some of the most common reasons why a petition is...

Credit Repair

Building Credit With No Credit

When it comes to building credit with no credit, there are several online canadian pharmacy factors that you need to take into account. Just because you do not have any credit history at present, it does not mean you will never have one. No one is born with a readymade credit history. You have to gi...

Credit Repair

A Loan To Defeat All Loans Debt Relief Loan
Payday loans fax-free payday loans and instant online payday loans are everywhere be it on the Internet newspapers or television. Today when the economy is in turmoil these loans look like the saving gra... Read more

Tips On How To Consolidate Payday Loan Debt
You may need to consolidate payday loan debt when you are caught in the middle of a financial crisis arising out of your inability to repay multiple loans. Debt consolidation loan allows you to consolidate all... Read more

Do Not Put Up With Debt Collectors Harassment
There was an emergency and the need arose to take a payday loan. It seemed to be the fastest and the best option available then. However now the debt collectors harassment is horrendous. The fact that using t... Read more

Consolidate Payday Advances To Save Yourself
Payday advances are loans taken against a persons paycheck. They have a way of digging into your paycheck month after month. They usually have exorbitant interest rates though the sites offering the services... Read more

Can I Consolidate Payday Loans
Can I consolidate payday loans is a question you are sure to ask yourself when faced with a trying financial situation. When payment of loans becomes difficult it is possible to consolidate and replace many... Read more

What are the pros and cons of debt consolidation?