Bankruptcy & Debt

Bankruptcy and debt law covers issues such as foreclosure, loan payments (credit cart debt, student loans, medical bills), repossession, wage garnishment and the declaration of bankruptcy when debts become impossible to manage.

Bankruptcy is the first step a person or business makes towards financial health is debt management. If the debt is too large to overcome, Bankruptcy helps people and businesses who are unable to pay their bills to those they owe. It wipes away much or all of their debt and gives them a fresh start. Chapter 7 and Chapter 13 of U.S. Bankruptcy Code are frequently used for personal bankruptcy and Chapter 11 for business filings. Under Chapter 7, the debtor’s non-exempt property is sold and the proceeds are distributed between the creditors. Under Chapter 13, the debtor keeps the property and a “reorganization plan” is created to pay creditors over the next 3-5 years. It is prudent to obtain legal advice from a bankruptcy attorney or debt specialist before deciding to file for bankruptcy. A bankruptcy filing can stay on your credit report for up to ten years.

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Richard Evanns
Updated
2 min read
Views
9,402
Once a judgment is entered against a debtor, California law provides for a variety of collection methods available to the creditor if the judgment remains unsatisfied. If unable to reach a voluntary payment arrangement, a creditor may place a lien on property held by the debtor, garnish wages...
Michael Wechsler
3 min read
Views
6,650
In bankruptcy law, there are levels of priority for which claims against a debtors assets are paid. Some debt claims may have priority over others. The most powerful of all debt claims in bankruptcy is the superpriority claim. If you are new to bankruptcy claims, let’s define the terms that are...
Michael Wechsler
3 min read
Views
6,799
Chapter 11 of the Bankruptcy Code helps business owners who are in deep financial crisis by allowing them to continue running and potentially save their businesses. The principle behind Chapter 11 bankruptcy reorganization is that it is better for all parties when a business is reorganized...
Michael Wechsler
3 min read
Views
5,472
Any time you start a legal action, you will almost certainly be required to pay a fee - even filing for bankruptcy. In addition to administrative costs the government must bear such as having a court clerk make photocopies and file your documents, the filing fees are intended to discourage...
Michael Wechsler
3 min read
Views
3,840
This article explains what is business bankruptcy, also known as Chapter 11 and Chapter 13. Bankruptcy laws allow a debtor to work with their creditor while undergoing a supervised division of the debtor’s assets by the court. Understanding Business Bankruptcy By allowing a debtor to retain...
Michael Wechsler
Updated
4 min read
4.00 star(s) 1 ratings
Views
11,471
This article provides information about how you can successfully challenge the foreclosure process on your home and also lists several governmental assistance programs that may provide aid and help you stave off foreclosure. You may be surprised by the number of remedies that currently may be...
Michael Wechsler
5 min read
Views
29,304
Comments
4
When individuals do not pay their bills, the creditor who holds their debt can get a court order to have their wages or property “garnished.” The creditor, with assistance from the court, can compel the debtor’s employer to withhold a portion of the employee debtor’s paycheck to be paid directly...
Legal Information
Updated
5 min read
Views
4,277
This article will help you understand the foreclosure process and the steps you can take to help avoid it from happening to you. Foreclosure is a legal process that your mortgage lender initiates in order to repossess or take back ownership and control of your home. This will occur if you are...
Michael Wechsler
2 min read
Views
4,069
This article will cover the basics of Chapter 7 of Consumer Bankruptcy law, helping you understand how it works, what debts are extinguished in consumer bankruptcy proceedings and what assets are exempt from being seized. Understanding Bankruptcy Bankruptcy law helps a debtor survive...
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