Bankruptcy Laws
Bankruptcy cases are handled by federal judicial district courts and not local state courts. The option to file bankruptcy was designed to protect people (or businesses) who can no longer afford to pay creditors; it allows a fresh start, though there are some lasting consequences.
Depending on the type of bankruptcy filed, assets will be liquidated to pay creditors, or a repayment plan will be determined. The Bankruptcy Code was revised in 2005 to require that individuals who wish to file bankruptcy must first attend 6 months of an approved credit counseling service.
There are a number of laws which determine the procedure for a bankruptcy case filing. For example, there are laws regarding the proper notification of creditors, and how they can file claims with the court. There are also restrictions on the actions a debtor is allowed to take once the filing has been made, regarding disposition of assets and obtaining new credit among other things. Each state also has its own laws regarding which assets will be exempt from liquidation to repay creditors.
If your credit has been affected by bankrupcty, you desrve the right information the first time. Contact us today for a free credit evaluation and a free credit repair consult. You do have options for credit repair and financial opportunity.
- Understanding Credit:
