Bankruptcy provides individuals or businesses a chance to start newly by ignoring the debts associated with their assets. Filing a bankruptcy improves economy by giving a chance of repayment of debts. This process starts with the court order which is being given after a debtor files a petition against the person. Then the debtor’s assets are being evaluated and these assets are used to repay the debts. Once this process is finished, the debtor is relieved from the obligations before filing for bankruptcy. Bankruptcy is a status of a person legally who can not repay the debts. In most of the countries bankruptcy is forced by courts.
Bankruptcy is considered as a white collar crime. The process of bankruptcy varies among different countries and it depends on the individual country's jurisdictions and laws. Bankruptcy in US will fall under various bankruptcy codes such as chapter7, chapter9, chapter11, chapter12, chapter13 and chapter15. The most common chapter used for individuals are chapter 7 and chapter13. In chapter7 people can come out of the bankruptcy issues without the need not make any extra payment. This is the most basic and simplest method. So, most of the people prefer to use this. This is available only once in 8 years. In chapter13, individuals need to keep some portion of their income to repay the debts. It should be done normally over a period of 3 to 5 years.
The San Diego law center is providing many efficient bankruptcy San Diego attorneys to the individuals and businesses who want to handle bankruptcy issues. They are more specialized in giving solutions regarding bankruptcy issues utilizing chapter7 and chapter13. They provide various services such as handling bankruptcy issues in an efficient way, managing taxes, filing bankruptcy for the chapter7 and chapter13 and many more. These chapter7 and chapter13 are best chapters for the individuals. Chapter7 is called straight bankruptcy and chapter13 needs a plan to follow for the repayment.
Exemptions:
The most important characteristic which is applicable to all types of filings of bankruptcy is automatic stay. This means the request for protecting bankruptcy will stop automatically and will bring to the halt of attachments, lawsuits, foreclosures and many more. There will be exemptions regarding bankruptcy which mean the debtor may retain property through bankruptcy. These are available only to individuals who are filing for bankruptcy. There are two types of exempting property from bankruptcy such as state exemptions and federal exemptions. Individuals need the help of lawyers for availing these exemptions.