Notice of the bankruptcy law

Bankruptcy is a legal process, allows consumers and owners of companies consolidate or, in some cases eliminate debt. Sometimes "Winding-Up" or "Restructuring" submission can help bankruptcy consumers receive a financial fresh start. Filing for bankruptcy protection is a right that is protected by federal law and all requests are handled by the federal courts. However, bankruptcy may not the best choice for all consumers and it is all kinds of debt wipe out including the amounts due to fines support or maintenance for children. Types of bankruptcy ProtectionFour bankruptcy protection types are available to consumers. Chapter 7, perhaps the best known is the "straight" bankruptcy or "Liquidation.". It requires the debtor "certain types of properties liquidate creditors to pay and the most common type of deposit". Chapter 7 can a debtor entitled to retain certain types of were like those relating to his trade and protection of personal effects.Chapter 11, also known as the "reorganization" often used for companies, the laws are complex and thus more expensive than Chapter 7 protection to track. There are entrepreneurs a chance to restructure their debt and by the legal obligations of leases and commercial contracts will be rejected. As a general rule it is often right, next to the traffic or operating restructuring although it is governed by the bankruptcy court and its 13 allows appointees.Chapter protection for borrowers to restructure their debts, so that you may be reimbursed. Such of deposit of vorzuziehenfür borrowers who have a reliable income is also known as the "planning of the employee". The mainadvantage of this kind of protection is that it remain declaring to avert procedure allows and locking in his house. Chapter 12 bankruptcy is designed for farmers and fishermen to have the annual Unerevenu. To organize this kind of protection farmers and fishermen and can pay your debt.Who the bankruptcy file? Any person or company can file bankruptcy in federal bankruptcy court. It is a legal and there are no minimum quantity that legally requires defined debt bankruptcy protection.How do you file bankruptcy protection file registered? the first step in filing for bankruptcy protection, seek the advice of a lawyer to help you to decide what kind of protection is most appropriate for your situation. Finding a lawyer, be sure to check references and confirm that he or she a member in good standing of the bar of your state. The lawyer prepare necessary documents and he filed with the bankruptcy court monitors the perimeter of the debtor. The debtor's creditors will receive a notice of initiation that issues an "automatic stay" force creditors to stop collection efforts.