What is bankruptcy and should I file for bankruptcy? This is a big decision that an individual or a business should not choose lightly. Bankruptcy is a legal proceeding carried out to allow individuals or businesses freedom from their debts, while simultaneously providing creditors an opportunity for repayment.
Sounds great, right. Well, there is a catch. Bankruptcy can allow you a fresh start, but it will stay on your record for several years depending on the type of bankruptcy filed. The various types of bankruptcy are commonly referred to by their chapter within the U.S. Bankruptcy Code.
These are the Bankruptcy filings in the United States and their definition per the Bankruptcy Code: Chapter 7, which involves liquidation of assets;
Bankruptcy is handled in federal courts, and rules are outlined in the U.S. Bankruptcy Code. If bankruptcy is the only option, we do work with an attorney who is licensed in the federal courts and can talk to you about the process. If you have questions, ask us for contact information.