Bankrupcy/Bankrupcies
Options before a bankruptcy.
Bankrupcy/Bankrupcies in the United States.Title 11, of the United States Code, is the federal statutory law for bankruptcy/bankrupcies. It is based upon the Constitutional requirement for "uniform laws on the subject of Bankruptcy throughout the United States." This requirement is found in Article I, Section 8. Bankruptcy proceedings, in the United States, are handled in the Bankruptcy Courts. These are part of the District Court system.Bankrupcy/Bankrupcies proceedings.Under the general category of bankrupcy/bankrupcies, there are several types of proceedings fitting The U S Bankruptcy Code. Each proceeding, or chapter, describes a different procedure available for debt resolution.Chapter 7.Chapter 7 filings, which are liquidation, are the most common form of bankrupcy/bankrupcies. It involves appointing a trustee to collects the non-exempt property of the debtor. They sell it and distributes proceeds to the creditors.Other bankruptcies.A bankruptcy under Chapter 11, Chapter 12, or Chapter 13 is more complex. It involves allowing the debtor to use future earnings to pay creditors. There is Chapter 9 bankruptcy, which is available only to municipalities. One of the most famous examples of a municipal bankruptcy was in Orange County, California.Chapter 9 is not liquidation. Rahter, it is a form of reorganization. Chapter 12 is similar to Chapter 13, but only available to farmers, in certain situations. As recently as mid-2004, Chapter 12 was scheduled to expire. However, in late 2004, it was given a new lease on life. Circumstances of bankruptcy.Debtors have the option to enter bankruptcy voluntarily. Or, an involuntary bankruptcy begins with as few as one creditor, if the debt owed is large enough. Sometimes, involuntary bankruptcies are used as a collection tool. Often, its use is very risky. If wielded improperly, subjects the creditor to large damages.Xanga Myspace LiveJournal | free pics images | free My space Backrounds |