Bankruptcy Law (16)

A wide variety of circumstances can place virtually anyone in a precarious enough financial situation that may merit filing bankruptcy. Understandably, this can be a very scary thought for most individuals; however, there are a number of resources available to help you. A good start to understanding what your financial options are, including bankruptcy claims, can begin with a cursory understanding of bankruptcy in general. Essentially, bankruptcy allows debtors to reorganize themselves financially or discharge debts under the Bankruptcy Code. Types of Bankruptcy There are numerous types of bankruptcy; however, for most individuals, bankruptcy claims will either be filed as Chapter 7 or Chapter 13 bankruptcy. Under Chapter 7 bankruptcy, individuals will attempt to discharge certain non-secured debts, as well as rectify outstanding secured debts through the sale of assets. In most cases, there are some debts that cannot be discharged and must be rectified, including tax obligations, criminal fines,…
Three situations are responsible for 80% of all bankruptcy cases filed, and they are largely beyond your control. Un-reimbursed medical expenses are the leading cause of bankruptcy. Job loss is second, followed by divorce. Often, any one of these factors may lead to another. Job loss may cause divorce almost as easily as disability results in unemployment. The progression is similar to a game of rock-paper-scissors with tragic consequences.A joint study conducted by two major credit card companies found that approximately 5% of all bankruptcy cases involved intentional credit card abuse. Small business owners who fail, victims of crimes, and single mothers account for the majority all remaining cases.Spend a day in the gallery of a bankruptcy court, if you dare. You will understand why ordinary people must file again. You will also wonder why the 2005 Bankruptcy Code amendments, designed specifically to punish small debtors and make filing more…
If you own a small business and are struggling with debt and considering declaring bankruptcy, you may wish to explore some options. There are a few different types of bankruptcy that may be appropriate for someone with a small business, but the option that is traditionally known as "business bankruptcy" may not actually be the best choice for you. Small Business Bankruptcy OptionsAs a small business owner, the way in which your business is organized is going to make a significant difference in how bankruptcy works. If your business is organized as a sole proprietorship or as a partnership, then your business is going to be considered as one and the same legal entity with you (or with you and your partners). This means that a "business" bankruptcy could end up impacting your personal assets and your personal credit standing. With that in mind, your options for business bankruptcy include…
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