Online Bankruptcy Laws

Archive for March 3rd, 2010

Bankruptcy means the legally stated inability of the person or the associations to pay off their credits. Involuntary bankruptcy is the condition in which the creditor can file a case against the debtor just to recuperate the portion of the amount that is due with him or her. In US, the bankruptcy cases are always filed by the district court. These cases are highly dependent upon the State laws and therefore in many of the bankruptcy cases, it is quite often impossible to simplify the bankruptcy laws all over the state lines.

Generally, there are six types of bankruptcy under the U.S code and they are as follows:

Chapter 7 is a basic liquidation for the people and business.
Chapter 9 is a municipal bankruptcy case.
Chapter 11 is a treatment by the business debtors or by the people with wide range of debts and possessions.
Chapter 12 is a remedy for the family farmers or the fishermen.
Chapter 13 is remedy for all those individuals with a regular source of earnings.
Chapter 15 is an auxiliary or for other international cases. Read the rest of this entry »