When a business or an individual is incapable
of making payment to creditors to pay off their debts, they have the option to
move on filing for bankruptcy, to ask protection under the bankruptcy law of
the Unite States. For a person, the bankruptcy protection may involve either a
systematic plan to pay down all the debts that are owed or a cancellation of
most debts, along with the selling off of some assets. In terms of business, bankruptcy
protection might either give full or partial relief of contracts and debts,
assuming the business will remain in operation, or the business may cease
operation and sell off its assets to pay debts.
If you are not so familiar with filing for bankruptcy, there are two types of bankruptcy protection usually used by
individuals: Chapter 7 and Chapter 13. Chapter refers to the actual chapter of
the bankruptcy code that describes each. The chapter 7, also known as “straight
bankruptcy
“or liquidation”, a trustee is appointed to control the person’s assets. The trustee then liquidates or sells the assets, then gives the money to the creditors to pay off debts, if this is possible. However, the person is permitted to keep some personal property. It depends on the laws present in the state a person lives.
“or liquidation”, a trustee is appointed to control the person’s assets. The trustee then liquidates or sells the assets, then gives the money to the creditors to pay off debts, if this is possible. However, the person is permitted to keep some personal property. It depends on the laws present in the state a person lives.
Winston I. Cuenant, Esq.,
is a highly talented French
speaking attorney Miami who can
extend his helping hands to guide towards a successful legal battle. He can
handle case in real estate, civil litigation, filing for bankruptcy and more.
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