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Chapter 7 Bankruptcy Carrollwood

Federal Laws in the United States of America are compiled in the form of U.S.C. (United States Code. It is a collection of different Titles, each comprising various Chapters. Chapter 7 (Title 11) concerns liquidation issues, as part of the country’s bankruptcy laws. Chapter 7 is a commonly prevailing bankruptcy procedure in the country. It affects varying entities differently.

Business Bankruptcy

When a business is majorly in debt and cannot repay its creditors, it may file for bankruptcy in the Federal Court under Chapter 7. However, it is not always a self initiative. There are numerous instances where creditors force the business to commence bankruptcy proceedings.

The next step marks the end of business operations. After this, a Chapter 7 Trustee is appointed. This is followed by selling the assets to repay creditors, that is, liquidation. Sometimes, entire verticals of one organization are sold to another as part of liquidation; hence employees keep their jobs.

Personal Bankruptcy

Permanent U.S. residents are allowed to file for Chapter 7 bankruptcy. A major distinguishing feature of personal bankruptcy is the freedom to keep exempt property. It prevents certain property from being seized or sold off to repay creditors.

Aside from negative connotations, it is also an opportunity to start afresh. In the process of recovering from bankruptcy, the individual develops an organized way to repay creditors and attempts to give a fresh start to their credit history.

Kinds Of Debt

Bankruptcy may be caused by numerous types of debts or a combination of any of them. These are:

  • Insurance
  • Mortgage
  • Credit Card
  • Car Payments
  • Medical
  • Student Loans

Factors Causing Personal Bankruptcy

Debt does not necessarily imply bankruptcy. There may be various other contributing factors, such as:

  • Avoiding Foreclosure
  • Unexpected Disaster
  • Divorce
  • Medical Expenses
  • Uncontrolled Spending
  • Job Loss


Carolyn Secor
 
 

 

The federal government passed new bankruptcy reform legislation in October 2005. However, don't be discouraged! Most studies indicate that the new law affects less than 15% of individuals who could have filed previously. If you are feeling overwhelmed by your debts and considering filing bankruptcy, it is highly probable that you fall into the category of the 85 percent of people who are still eligible to file.

 

 

 

"Serving Pinellas, Pasco, and Hillsborough Counties."

Carolyn Secor, Attorney at Law
Bankruptcy Attorney Tampa Bay Florida
Florida Law Firm with Offices in
Clearwater (Main Office) Tampa St. Petersburg Port Richey
Phone:  1-727-254-1704
www.bankruptcyfortampa.com

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

       
 
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