Sunday, April 24, 2011

What is bankruptcy?

If you cannot pay all of your bills on time, and you are being harassed by creditors or collectors, you may be asking  "What is bankruptcy?"  Bankruptcy comes in different chapters.  Chapter 7 is the fresh start or liquidation bankruptcy.  Chapter 11 is a large scale reorganizing bankruptcy for individuals or companies. Chapter 12 is the farmer's bankruptcy.  Chapter 13 is a personal reorganizing bankruptcy and cannot be used by corporations or llcs.

In the United States bankruptcy is authorized by federal laws under 11 United States Code. 
Bankruptcy can assist an individual or company to reorganize or liquidate debt. 
Bankruptcy is a creature of law, created by congress for the express purpose of resolving
debt problems that cannot otherwise be resolved.

If you cannot handle your debt, you should consider bankruptcy.  We do not have debtor's prison in the United States so, if you need it,  you should consider bankruptcy.    

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