Sanders, Bruin, Coll & Worley, P.A. offers a full range of bankruptcy services for both the debtor and the creditor. The U.S. Bankruptcy Code can deliver protection to people who are suffering under mountains of debt or facing foreclosure or repossession.
What is bankruptcy?
Bankruptcy is a legal proceeding in federal bankruptcy court by which a person who has more debts than he or she can pay seeks relief from those debts. The right to file a bankruptcy exists under the law, and was designed to take care of problems with debts and to allow a fresh financial start. The person who files for bankruptcy is legally referred to as a debtor. The persons who the debtor owes are referred to as creditors.
Who can file for Bankruptcy?
In general, any person or business can file for bankruptcy. There is no minimum amount of debt required; however, in most cases, a person who files does owe considerably more in debts than he or she can pay.
There are different types of Bankruptcy that one may need to file. For example:
Chapter 7 – Chapter 7 is a bankruptcy proceeding in which a company stops all operations and goes completely out of business.
Chapter 11 – Reorganization which usually involves a partnership or corporation. This is a plan to keep the business alive and pay creditors.
Chapter 13 – Is a plan for individuals to repay all or portions of their debt over the 3 to 5 years.