http://www.assistfinancial.info extensively deals with bankruptcy to help laymen understand the legal process better. http://www.monetaryguru.com helps find better solutions to avoid foreclosures.
The term Bankruptcy means the legally declared inability of an individual or an organization to pay their credits. Involuntary bankruptcy is the situation in which the creditor may file a bankruptcy petition against a debtor to recover a portion of the amount dues him. Generally in a majority of cases, bankruptcy is initiated by the debtor known as “voluntary bankruptcy”. Bankruptcy in the United States is placed under ‘Federal jurisdiction” by the United States Constitution that enacts “uniform laws on the subject of bankruptcies throughout the United States’.
Bankruptcy cases are always filed in the U.S.bankruptcy court-an adjunct to U.S. District court. Bankruptcy cases with respect to validity of claims and exemptions are highly dependent upon State laws and therefore in many bankruptcy cases, it is often impossible to generalize bankruptcy laws across state lines.
There are six types of bankruptcy under Bankruptcy Code of the U.S code.
Chapter 7: Basic liquidation for individuals and business.
Chapter 9: Municipal bankruptcy.
Chapter 11: Rehabilitation by business debtors and also by individuals with extensive debts and assets.
Chapter 12: Rehabilitation for family farmers and fishermen.
Chapter 13: Rehabilitation for individuals with a regular source of income.
Chapter 15: Ancillary and other international cases.
The most common types of personal bankruptcy for individuals are chapter 7 and chapter 13. In chapter 7, a debtor surrenders his or her non-exempt property to a bankruptcy trustee who liquidates the property and distributes the proceeds to the debtor’s creditors. In exchange for this, the debtor is entitled to a discharge from debt unless the debtor is not guilty of certain types of inappropriate behavior like hiding records concerning financial conditions. Many individuals who are bankrupt own only exempt property. The exempt amount varies from state to state. Chapter 7 relief is available only once in any 8 year period.
In chapter 13, the debtor retains ownership and possession of all his or her assets but must devote a part of his or her future income to creditors over a period of 3 to 5 years. The amount and period vary depending upon the value of debtor’s property and the amount of debtor’s income and expenses. Secured creditors are entitled to greater payment than unsecured creditors.
There are many types of proceedings that fit under bankruptcy. Chapter 7 liquidation involves the appointment of a trustee who collects the nonexempt properties of the debtor, sells them and distributes the ties proceeds to the creditors.
Chapter 9 is a form of bankruptcy available only to municipalities.
Chapter 11 involves allowing the debtor to keep a portion of his or her property and use the future earnings to pay off creditors.
Chapter 12 is similar to chapter 13 but available only to family farmers and family fishermen in certain situations.
Chapter 15 deals with foreign companies with U.S.debts.
Bankruptcy crimes: Bankruptcy fraud is filing a bankruptcy petition in a bankruptcy case to attempt to execute or conceal a scheme or pretense to defraud. Bankruptcy fraud also means making fraudulent representation claim or response in connection with a bankruptcy case. Bankruptcy fraud is punishable by a fine or by up to 5-year imprisonment or both. Bankruptcy crimes are prosecuted by the United States attorney after a reference from the U.S trustee.
Banks and other deposit institutions, insurance companies, railroads and certain other financial institutions regulated by the federal and state governments cannot be a debtor under the bankruptcy code. Instead, special state and federal laws govern the liquidation of these companies. It is erroneous to refer to a bank or insurer as being “bankrupt’. “Insolvent”, “in liquidation” or “in receivership” would be fitting under some circumstances in the U.S context at least.
- Related Videos
- Related Articles
- Ask / Related Q&A
- Seven Steps on How to File for Bankruptcy
- How to File for Bankruptcy: 3 Methods on How to File Personal Bankruptcy That You Must Know
- 10 Warning Signs You Need to File for Bankruptcy
- Gets Your Answers About Filing For Bankruptcy
- Is Filing For Bankruptcy The Only Hope To Becomeing Free of Debt?
- Things To Try Before Filing For Bankruptcy
- Filing For Bankruptcy Without Lawyer Aid
- What You Need To Know About Exempt Properties When Filing For Bankruptcy




Mortgage Refinance No Closing Costs: Is It Possible?
By: Paul Wise | 31/12/2009What's the catch when doing a mortgage refinance no closing costs type of deal?
Payday Loans Help in Car Repairs
By: Walter Smith | 31/12/2009There have been many instances in my life when I really felt helpless; but since I found the benefits of payday loans it has never happened again. A payday loan is one of the most preferred options of many US natives. It is a form of temporary loan taken in...
Campus for Finance 2010 draws Memorable Speakers
By: William Feins | 31/12/2009Every year for the past ten years, the students of the WHU, Otto Beisheim School of Management in Vallendar/Koblenz, Germany, have held their own New Year’s Conference on finance. Putting internationally renowned speakers from the worlds of politics, academia and industry together with exceptional graduate and undergraduate students, the conference invites a thought provoking environment in which creative minds can interact and exchange concepts regarding finance in today’s global arena.
Fast Debt Relief - How to Eliminate Debt in the Minimum Time Frame
By: Matt Couch | 31/12/2009We generally have the impression that the settlement process is a long and tedious job.
Why Having Over $10,000 in Unsecured Debt Could Play to Your Advantage in Eliminating Debt
By: Matt Couch | 31/12/2009When it comes to eliminating debt, you have unlimited options to support your cause, but you need to stick to the best program so that your problems are well addressed.
Legal Debt Relief Options - How to Legally Eliminate 70% of Your Unsecured Debt With a Settlement
By: Matt Couch | 31/12/2009This economic recession had an unprecedented impact like increased unemployment, large financial bailouts, the and backbone of economy seemed to be collapsing.
Refinance Home Loan: Is It Another Mortgage Option?
By: Asem Eltaher | 31/12/2009There are many reasons why a person may want to take advantage of this financial aid. They can be very beneficial in many ways to the homeowner. For example, first time home buyer loans and people seeking for second mortgage can get huge benefits from this option. So, reveal here the needed information to know where you should go
Free Debt Settlement Counseling - How to Get Help With Debt Online For Free
By: Matt Couch | 31/12/2009While you are actively searching for the right guidance on debt management, there are millions like you doing the same.
Fur Sweater with Natural Materials
By: Lesley Lyon | 16/05/2009 | ClothingFur sweaters made of natural materials generally have a standard look and the style and are thus invulnerable to the changes in the fashion. Read on to know how to choose fur sweaters of high quality.
Fur Jackets Exclusively for Teenagers
By: Lesley Lyon | 16/05/2009 | ClothingThe faux fur jackets and the suede jackets are very popular among the teenage groups. Here are some useful tips to get the best fur jackets to make a unique style statement.
Fur Coats Shopping: The Factors to Consider
By: Lesley Lyon | 16/05/2009 | ClothingThere are certain factors that should be considered before going for buying of fur coats like design, quality and price. Here are some useful tips for you to make a smart buying decision.
Fur Clothing: Traditional Designs
By: Lesley Lyon | 16/05/2009 | ClothingFur clothing has been in use since unknown ages. Some of the traditions designs of fur clothing explained here for a better protection from cold and make a fashion statement as well.
Faux Fur Coat Selection Tips
By: Lesley Lyon | 16/05/2009 | ClothingThose wearing the faux fur coats can feel the comfort and the warmth which they would not have felt when wearing the other fur coats. Read on to know how to find the best faux fur coat varieties.
Understanding Ovarian Cyst Dermoid Complications
By: Lesley Lyon | 13/05/2009 | Women's HealthThe dermoid cyst in the ovary is called as the ovarian cyst dermoid. They are the tumors that occur mainly from those cells which would have turned as eggs otherwise. This article explains how to completely treat the condition.
Ovarian Pain: Symptoms and Remedy
By: Lesley Lyon | 13/05/2009 | Women's HealthThere are various conditions like cyst to the tumor that can create pain on the ovary. Read on to know how to completely cure pain in ovarian with proper medical assistance.
Ovarian Pain: Symptoms and Remedy
By: Lesley Lyon | 13/05/2009 | Women's HealthThere are various conditions like cyst to the tumor that can create pain on the ovary. Read on to know how to completely cure pain in ovarian with proper medical assistance.