Learn More about Chapter 7 Bankruptcy
January 8th 2010 -
Because economic slowdown is usually heard in the United States, it not rare to hear about bankruptcies anymore whether corporate or personal bankruptcy. In simple terms, bankruptcy refers to the legal process that deals with the debt and financial problems of individuals or organizations. In the US, it is classified broadly as under Chapter 7, Chapter 9, Chapter 11, Chapter 12, Chapter 13, and Chapter 15. The majority of the cases of bankruptcies are filled under Chapter 7, Chapter 11 and Chapter 13.
The Chapter 7 bankruptcy is commonly used by those individuals who have fallen under debt. This chapter is is referred technically as Liquidation under Bankruptcy Code. The assets of the person who file under this chapter will be auctioned and sold so to repay his debt. He may file for liquidation under the Bankruptcy Code just as long as he’s not denied appearing before court. Debtors are also required to meet credit counselors a hundred and eighty days before filing a petition.
The lost of assets such as properties are the biggest consequence of filing this chapter of Bankruptcy.
Tags: Business