Denver Bankruptcy Attorney: The Different Types of Bankruptcy Petitions Available to Individuals and Businesses

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1. Denver Bankruptcy Attorney: The Different Types of Bankruptcy Petitions Available to Individuals and Businesses Colorado Bankruptcy Lawyers Professionals Bankruptcy is a petition made by an individual or an organization when it can no longer perform its obligations to creditors. The claim has to be filed in the proper court where it will be reviewed before the court will release an order to stop creditors from pursuing the debtor for a certain period. When the petition is granted, an estate is created and a trustee is assigned to supervise the management of the case. In this period, the debtor will be allowed to recuperate so it can pay its creditors. The plan will depend on the type of bankruptcy petition. Bankruptcy Petitions Available for Individuals or Organization There are 3 types of bankruptcy petition available to regular individuals and organizations or businesses. Chapter 7 This petition is also known as straight bankruptcy and it is available to both individuals and businesses that wish to file protections. In this chapter, the assets are gathered to be liquidated and the proceeds will be given to the creditors to clear the debtors obligations. For businesses, the operations will cease or continue depending on the trustee. The trustee will continue to oversee the business affairs in preparation for the liquidation of assets. The trustee can sell the assets to accumulate earnings which will be paid to the creditors. It can also look for new investors to manage the business so operations will not be affected. Small Blogposts Concerning Denver Bankruptcy Attorneys Best Choice Denver Bankruptcy Attorney The process is quite the same when applied to individuals but a person is allowed to keep certain properties or assets. Only those non-exempt properties or assets will be liquidated to come up with a fund to pay the creditors. However, discharge of unsecured debts is not absolute because some will remain like child and spousal support, taxes, and student loans to name a few. Chapter 11 This petition is common in businesses and corporations since the essence of the chapter is business reorganization. Under chapter 11, the business will be allowed to keep its assets for a certain period while it formulates a plan to pay its creditors. Chapter 13 Chapter 13 is somewhat similar to chapter 11 because it involves reorganization. However unlike chapter 11, this chapter is applicable to income-receiving individuals who are granted rehabilitation provided that they fulfill a court-approved plan. In this chapter, part of the wage of the individual will be given to the chapter 13 trustee who in return will manage a plan to pay the creditors. Modern Blog Posts And Articles About Bankruptcy Lawyer Denver 2. Bankruptcy Lawyers In Denver Guides It is really difficult to be in a financial dilemma especially when it involves creditors. It becomes a serious problem when we no longer have cash to pay them. We can lose our home, cars, and other properties at any moment because creditors will be after our assets when we can no longer pay our debts. Fortunately, we can always file for bankruptcy so we can rebuild our credit and get back on a healthy financial footing. However, recent changes in the bankruptcy law have made the process a bit complicated and it will be impossible to handle the claim on our own. Luckily, we can always count on bankruptcy law experts when it comes to filing a protection when we can no longer satisfy our creditors. Superb Documents On The Subject Of Denver Bankruptcy Attorneys Bankruptcy Lawyer Denver Well Written Articles Do I Need to Hire a Bankruptcy Law Attorney? The law does not require us to hire an attorney but their expertise and insights regarding bankruptcy can help us handle the issue effectively. As discussed earlier, the U.S. Bankruptcy Law has been amended and tightened. It will be difficult for ordinary citizens without knowledge about the law to handle the case alone. However, experts on the law can help us understand the process by presenting different options which we could take at this stage. Lawyers also provide inputs which can reduce the damage to our reputation as well as inputs regarding pitfalls in claiming for bankruptcy. Impressive Bankruptcy Lawyer Denver http://200.0.156.162/index.php?title=Bankruptcy_Attorney_Denver_Co:_Why_You_Need_to_ Hire_a_Reputable_Bankruptcy_Law_Attorney Remember that the court is the sole body that will grant your petition but they can dismiss your claim if the court finds it insufficient. A mistake is expected if we do not have sufficient knowledge about filing for bankruptcy which is why consultation from an expert is very valuable in this phase. What to Look for in a Bankruptcy Law Attorney

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