People tend to think of bankruptcy as a financial matter. Bankruptcy is more accurately described as a legal proceeding involving money. It is a legal resource intended to be used when a person or business has exhausted all other options and is unable to repay outstanding debts or obligations.
The process is handled in federal courts and follows the U.S. Bankruptcy Code rules. Typically, a judge and court trustee review the person or business’s assets and liabilities to determine which debts can be discharged (i.e., not legally required to pay) and which need to be paid.
This process gives people and businesses a chance at a new start, despite their finances collapsing.
The bankruptcy process is governed by the Federal Rules of Bankruptcy Procedure and includes very precise requirements spanning procedural steps, legal forms, and deadlines that must be met. These proceedings are fairly uniform across the 90+ across the United States.
While the process may seem daunting, remember that the creation of the Bankruptcy Code in 1978 was to provide relief and a fresh start to individuals, families, and companies struggling with burdensome debt. Depending on the type of bankruptcy that is filed, all debts may be eliminated, some debts may be eliminated, or a reasonable debt repayment plan may be set in place by the court.
Below you’ll find some frequently asked questions we typically get involving bankruptcy. If you have questions regarding your specific situation, please don’t hesitate to contact us today for a risk free consultation.
Frequently asked questions about bankruptcy
- How to Declare Bankruptcy
- 5 steps to file for bankruptcy
- What Are The Types of Bankruptcy?
- Who should file for bankruptcy?
- 4 most common reasons why people file for bankruptcy
- When should you file for bankruptcy?
- Should you hire a bankruptcy lawyer or go pro se?
- Debts that cannot be forgiven
- Alternatives to filing for bankruptcy
- How An Attorney Can Support You in Filing for Bankruptcy
- What to Expect During the Bankruptcy Process
- What Is a Bankruptcy Discharge and How Does It Operate?
- Common Bankruptcy Fraud Examples
- When you shouldn’t file for bankruptcy
- Consequences of filing bankruptcy