IMPORTANT FACTS ABOUT BANKRUPTCY
Bankruptcy?? ď‚ž
An individual filing for bankruptcy legally announces that he is not in a position to service his debt obligations. The status of being 'bankrupt' relieves debtors from the legal obligation of debt payment to creditors.
Basics of Bankruptcy
Two main parties are involved in bankruptcy filings the debtor and the creditor. The debtor is the party who has debt, or owes money, to the creditor. A debtor can be a company or an individual. The creditor is an organization or company that claims the debtor owes property, service, or money. Most bankruptcy cases involve several creditors.
Types of Bankruptcy ď‚ž
The type of bankruptcy that you file depends on several factors, including whether or not you are an individual or part of a corporation.
Chapter 7 ď‚ž
This is a liquidation bankruptcy, which means that the trustee sells off all non-exempt assets held by the debtor so that the debts can be repaid to the fullest extent possible. Individuals, corporations and partnerships are all eligible for Chapter 7 bankruptcies.
Chapter 11 ď‚ž
Chapter 11 is the most complex bankruptcy filing and the one that most troubled businesses file (although some individuals may file it as well). In a Chapter 11 bankruptcy filing, the debtor continues to function, maintains ownership of all assets, and tries to work out a reorganization plan to pay off creditors.
Chapter 12 ď‚ž
Chapter 12 is specifically for farm owners. The debtor still owns and controls his assets and works out a repayment plan with the creditors. Chapter 13 is like Chapter 11, but for individuals. The debtor retains control and ownership of assets.
Advantages of Filing for Bankruptcy ď‚ž
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Getting bankrupt is in no way a desirable state, but it is not the end of the road either. You can make a comeback with careful planning. Mental peace: Numerous cases of suicide and murder related to individuals' debt situation are reported commonly nowadays. Before filing for bankruptcy, debtors do not get enough time for planning their future since the focus remains on creditors. Remember, even will all your assets gone, you still possess your skills and intelligence.
Who Am I‌ 
Century Law Firm provides debt relief through debt defense, debt settlement, debt consolidation, bankruptcy and other financial relief services like FDCPA defense and other services for consumers in need of financial help due to credit cards and other unsecured debts.