What is the Bankruptcy Code?
The Bankruptcy Code refers to Title 11 of the United States Code. (11 U.S.C. º 101-1330) Federal Law governs bankruptcy. Where do I get a copy of my states local rules? Copies can be obtained at the public service counters in the Clerk`s office of the Bankruptcy Court. In addition, many Bankruptcy Courts now have their rules online. Who can file for bankruptcy? Any person, partnership, corporation or business trust may file bankruptcy. In addition, charitable or social organizations may also file for bankruptcy. United States citizenship is not a requirement for filing bankruptcy. Will filing bankruptcy effect my credit rating? Unfortunately it will. However, most individuals are able to rebuild their credit within a few years. If you are currently contemplating bankruptcy, then it is likely that your current credit rating has already been effected. A discharge of your current debt may provide the opportunity to rebuild your credit with steady, regular payments on a new account. How lo
The Bankruptcy Code refers to Title 11 of the United States Code. (11 U.S.C. 101-1330) Federal Law governs bankruptcy. What is a Chapter 7? Chapter 7 is the most common form of liquidation bankruptcy. It is a “fresh start” proceeding in which a consumer or business asks the bankruptcy court to wipe out (discharge) the debts owed. Certain debts cannot be discharged. In exchange for the discharge of debts, the business’s assets or the consumer’s nonexempt property is sold (or “liquidated”), and the proceeds are used to pay off creditors. Chapter 7 is available to individuals, married couples, corporations and partnerships. Individual debtors typically receive their discharge within 4-6 months of filing the case. Any wages the debtor earns after the case is begun are the debtor’s, beyond the reach of creditors who had claims on the date of filing. [ Back to Top ] What is a Chapter 11? Chapter 11 is a reorganization proceeding, typically for corporations or partnerships. Individuals, espec
First enacted in 1978 and substantially revised in 2005, the Bankruptcy Code contains the statutes (laws) that grant legal forgiveness of debt for businesses or individuals in financial difficulty. There are two primary types of bankruptcy relief available under the Code: liquidation (Chapter 7) or reorganization (Chapters 11, 12 and 13). These options are best discussed with a qualified attorney. The Bankruptcy Code is available on line at the court’s website, as well as at local law libraries. The text of the 2005 Bankruptcy Reform Statute is also available on our website.
Created in 1978, the Bankruptcy Code contains the rules that provide for bankruptcy relief for businesses or individuals in financial difficulty. There are two options for bankruptcy relief: liquidation (Chapter 7) and reorganization (Chapters 11, 12 and 13). These options are best discussed with a qualified attorney. The Bankruptcy Code is available at law libraries. You may also access the Code via a link from our web site.
