Welcome to Bankruptcy Guide
Bankruptcy Laws Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Looking at the Forms Bankruptcy Can Take
from:There are many types or forms bankruptcy can take. The US bankruptcy laws are designed to help individuals, businesses and even municipalities that are having severe debt problems that appear to be unsolvable within the current income or revenue levels. There are many reasons why this happens, but the reasons seem unimportant when buried under a mountain of debt. As many people discover when bills become backlogged, debt collection practices are harsh. The phone rings off the hook with collectors, and the late notices and penalty charges only seem to make the situation worse by the day. When you owe back taxes, the IRS is relentless when it comes to collecting the money.
The forms of bankruptcy are defined as chapters. The chapters were written to provide a specific form for filing when you are an individual, farmer, business, or municipality. Most people are aware of the availability of bankruptcy laws applicable to people and businesses, but even counties and cities can find themselves unable to pay their debt. Right now there is a current case in Alabama in which a county cannot pay its sewer bonds and is considering filing bankruptcy.
The first form bankruptcy takes for individuals is chapter 7. A chapter 7 is a liquidation bankruptcy in which your non-exempted assets are used to pay off as much debt as possible and the remaining balances are eliminated. A chapter 13 is called an individual debt adjustment form. In this case, an individual agrees to a court defined debt repayment plan.
Another form bankruptcy can take is chapter 11 which is a business reorganization plan. Under this chapter, the business asks for the debt to be adjusted in a way that makes it workable. The business can also ask for a total reorganization which is often what you read about large corporations doing in order to stay in business. Farm businesses, on the other hand, will file a chapter 12 when needing debt relief.
The other types of bankruptcies are chapter 9 for municipalities and chapter 15 for ancillary cases or cases which don't fit the other defined chapters. There are even bankruptcy laws that address service people who are unable to pay their debts because they are overseas serving their country.
It is easy to see how complex the bankruptcy codes really is and it is a work in progress too. Every day new court cases refine the code based on actual experiences. A good bankruptcy attorney will always stay current on the laws so that you are able to get the best advice possible. The goal is to help you or your business start over again financially, but in a way that is the best fit for your situation.
Bankruptcy Laws News
UAE set to approve new bankruptcy law by end-2012 - Justice Min - Reuters
 MENAFN.COM | UAE set to approve new bankruptcy law by end-2012 - Justice Min Reuters DUBAI May 14 (Reuters) - The United Arab Emirates is close to finalising an updated federal bankruptcy law and a draft of the legislation should be ready by the end of this year, Justice Minister Hadef bin Juan al-Dhaheri said on Monday. UAE federal bankruptcy law to be ready by year end Key UAE laws by year-end |
Octomom Files for Bankruptcy, Because Our Bankruptcy Laws Are Great - Forbes
 Forbes | Octomom Files for Bankruptcy, Because Our Bankruptcy Laws Are Great Forbes The excesses of our celebrities can be enough to call into question any law that benefits them. The woman better known by her tabloid nom de plume as Octomom has officially filed for bankruptcy, E! News can confirm. “I have had to make some very ... |
Macey Bankruptcy Law's Optimism on Bank of America's Offer - MarketWatch (press release)
Macey Bankruptcy Law's Optimism on Bank of America's Offer MarketWatch (press release) The attorneys at Macey Bankruptcy Law advise clients to take a look at the letter if you received one. This deal may sound like it is too good to be true but for about 200000 homeowners, Bank of America will be offering mortgage principal reductions. |
Kodak Patent Declared Invalid In Case Vs Apple, RIM - Wall Street Journal
 Toronto Star | Kodak Patent Declared Invalid In Case Vs Apple, RIM Wall Street Journal (EKDKQ) was declared invalid Monday because of "obviousness" by an administrative law judge, dealing a blow to the bankrupt imaging company that is trying to squeeze its intellectual property portfolio for much-needed cash. ITC Judge Finds Kodak Patent Invalid In RIM Litigation |
Akin, Gump, Steptoe, Gibson Dunn: Business of Law - Bloomberg
Akin, Gump, Steptoe, Gibson Dunn: Business of Law Bloomberg Firm News Dewey Bankruptcy Filing Could Come Within Weeks, WSJ says Dewey & LeBoeuf LLP may file for bankruptcy protection within weeks, the Wall Street Journal reported on May 18. Joff Mitchell of restructuring firm Zolfo Cooper is acting as the law ... |