Bankruptcy is something that nobody wants to deal with over the course of their life. Yet it does happen, and not always because of a bankrupt person’s own personal actions. Occasionally, bankruptcy is the result of a lapse in fiduciary responsibility. Sometimes, it occurs simply because of an unforeseen turn of events. With that being said, lots of people find that the legal process of filing for bankruptcy is more complicated than they previously foresaw. It’s important that, when filing for bankruptcy, you do so with professional legal counsel. Sometimes, the process involves bankruptcy mediation. Bankruptcy mediation requires the help of experienced legal consult firms, particularly those that have experienced people like former judges in their employ. Below we’ll look into what goes into filing for bankruptcy, and why you might want to look into bankruptcy mediation in the process. The more careful you are about filing for bankruptcy, the more likely you will be to move on with your life after filing. Filing for bankruptcy doesn’t have to define you — by taking the right legal steps, many people move on to live normal and even prosperous lives after their cases are over and done with.
What Are The Different Types Of Bankruptcy That People Can File For?
There are several different types of bankruptcy that people can file for. These include Chapter 7, Chapter 13, Chapter 11, Chapter 12, and Chapter 9. Chapter 7 bankruptcy involves liquidating your assets — this is why it’s often called “straight bankruptcy” or “complete bankruptcy”. It’s the most commonly filed for type of bankruptcy, and basically allows a person to start anew. Essentially, this involves a trustee collects the debtor’s nonexempt assets. These are then reduced to cash, and distributions are then made to creditors in accordance with bankruptcy law. Usually, a debtor will be released of personal liability for certain debts. If you can’t repay any debts, if you have no cosigners, or if you face legal action from your creditors, this could be for you. Chapter 13 bankruptcy, in contrast, involves the adjustment of debts for those with regular incomes. If you do have an income and want to repay your debts but can’t, this kind of bankruptcy allows you to keep certain assets and make a plan to repay creditors over time. Usually, Chapter 11 bankruptcy applies to commercial enterprises that want to maintain their businesses, while at the same time paying their creditors through a reorganization plan approved by the court. It’s estimated that about 90% of chapter 12 debtors have less than $10 million in assets or liabilities, as well as less than $10 million in annual revenues, as well as 50 or fewer employees. Chapter 12 bankruptcy involves the adjustment of debts of a family farmer with a regular income. Chapter 9 bankruptcy, finally, applies to the adjustment of debts of a municipality.
Why Work With Bankruptcy Mediation Services?
Bankruptcy mediation services can help you make a plan for how to repay your creditors, as well as how to move on after filing for bankruptcy. Often, these firms have a number of former judges on hand to provide advice. One such judge served as a United States District Court judge since 2000, and as a United States Magistrate Judge from 1993 to 2000. Another has presided over 150 jury trials, as well presiding over hundreds of patent cases, while holding over 150 claim construction hearings.
Is Filing For Bankruptcy The Choice For Me?
The reality is that if you can’t repay your creditors, you may very well not have a choice. Bankruptcy is a way in which people can either repay their creditors without getting into more trouble than they’re already in. While bankruptcy may be a difficult thing to consider, it can ultimately help people get the repayment they need — on the creditor’s ends. And for debtors, it can help them get to a point where they can start a new.
