Upon filing the original bankruptcy petition with the clerk's office, practically takes effect immediately and prohibits virtually all of the debtor's creditors from taking any collection action against the debtor or the debtor's property. But remember. First of all, you should ask if bankruptcy is a good idea for you! Are you familiar what happens when you start "personal debt relief", ie financial bankruptcy? There are many different factors that should be taken into account when considering filing for bankruptcy (debt relief). Nolo can tell you what bankruptcy can do and what bankruptcy can't do!
- There are special types of bankruptcy most commonly used by individual (personal, commercial) filers in the United States
- Remember, that the bankruptcy proceeding is not for everyone (poorly made bankrupt can rid you of personal property)
- You have to ensure that you are eligable to file for the right type of bankruptcy you want to file. It depends on the circumstances, context and your place of residence (debt relief under U.S state). - Process - Bankruptcy Basics
- Your bankruptcy lawyer will help you to determine, what kind of your debts will and will not be forgiven. The right bankruptcy attorney will prepare you and your case to the bankruptcy proceedings.
Very interesting graph: ranking the US states by fiscal condition in 2016
What can be "harvested" from the above chart uploaded? The financial health of each U.S state (and its inhabitants) can be analyzed through the audited financial reports. Get more informations about cash solvency, long-run ability to repay debts, service-level solvency and trust fund solvency.
- Cash solvency. Does a state have enough cash on hand to cover its short-term bills?
- Budget solvency. Can a state cover its fiscal year spending with current revenues, or does it have a budget shortfall?
- Long-run solvency. Can a state meet its long-term spending commitments? Will there be enough money to cushion it from economic shocks or other long-term fiscal risks?
- Service-level solvency. How much “fiscal slack” does a state have to increase spending if citizens demand more services?
- Trust fund solvency. How much debt does a state have? How large are its unfunded pen-sion and healthcare liabilities?
Chapters of the Bankruptcy Code - Wikipedia
- Chapter 7: Liquidation
- Chapter 9: Reorganization for municipalities.
- Chapters 11, 12, and 13: Reorganization
- Chapter 15: Cross-border insolvency
- Chapter details on wikipedia
- Individuals may file Chapter 7 or Chapter 13 bankruptcy, depending on the specifics of their situation.
- Municipalities—cities, towns, villages, taxing districts, municipal utilities, and school districts may file under Chapter 9 to reorganize.
- Businesses may file bankruptcy under Chapter 7 to liquidate or Chapter 11 to reorganize.
- Chapter 12 provides debt relief to family farmers and fishermen.
- Bankruptcy filings that involve parties from more than one country are filed under Chapter 15.
Would you like to find an experienced bankruptcy lawyer near me (you) quickly and for a good price? Generally, bankruptcy law can provide a timeline (arrangement) for the repayment of non-dischargeable personal (corporate) debts. The ability to repay secured debts is valid for both Individuals as well as organizations (governmental and private). Bankruptcy comes in five varieties where each offering different options "settling" with debts.
- Chapter 7: Cancelation of unsecured debts (credit cards and personal loans). Bankruptcy law in the United States has changed dramatically in 2005. Liquidation of personal debts under a Chapter 7 is the most common form of debt relief. Most of chapter 7 cases are classified as "no asset".
- Chapter 9: Reorganization of municipalities and related local entities sheet (not for Individuals and Corporations). A chapter 9 of bankruptcy law in U.S is very special. It is a form of debt reorganization (not disposal). Remember, it is only avaliable to Municipalities
- Chapter 11: This chapter Provides a lot of options to reorganize debt. There are options such as "debt cancellation", repaying some debts for Individuals, etc ...
- Chapter 12: Restructuring of debts for Family Farmers is done according to this chapter.
- Chapter 13: repayment of some debts over a period of three to five years + reduction on secured debts and their elimination.
Is it better to file for a bankruptcy under Chapter 11, Chapter 12 or Chapter 13? It depends on your case. Your first step should be finding and hiring the best and most affordable bankruptcy attorney near you. Bankruptcy proceedings in the United States are (should be) supervised by District and Bankruptcy Courts governed by the bankruptcy rules (promulgated by the Supreme Court - www.supremecourt.gov)