Bankruptcy is a process that is governed by federal law, supervised by bankruptcy court, which allows individuals to seek relief from overwhelming debt and obtain a new financial start. An individual that cannot repay their debts when they become due, files for bankruptcy, following a legal framework that resolves debts and determines how creditors will be paid. A bankruptcy attorney can help determine which one is right, based on your situation. Some types of bankruptcy proceedings include:
There can be various consequence for filing for bankruptcy. However, the impact is not permanent. Given time, and responsible financial management, an individual can rebuild positive financial standing. Common consequences for filing for bankruptcy include:
The assets that you can keep in bankruptcy depend on the type of bankruptcy you file and the state you live in, determining exemption laws. Exemption laws define types and amounts of property that can be protected from seizure to repay creditors. Exemption laws do have limitations. Consulting with a bankruptcy attorney can help you understand what is best for your situation and which assets you can keep.
Through bankruptcy, a debt that you are no longer liable for repaying is considered discharged. Discharged depts vary with the type of bankruptcy you file and the laws and regulations in your state. Not all debts can be discharged, and some have certain requirements that must be met. Common types of debt that may be discharged are:
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