|
Bankruptcy Laws
When the inability of an individual or a company to pay the creditors is legally declared, it is termed
as Bankruptcy. The bankruptcy procedures may be initiated by either the
creditor (known as involuntary
bankruptcy) or the debtor (a voluntary bankruptcy).
In the United States, there are specific courts that
handle bankruptcy rulings and specialty lawyers who handle these cases.
The fundamental goal of the federal bankruptcy laws enacted by Congress
is to give honest debtors a financial fresh start from
burdensome debts. The
Supreme Court made this point about the purpose of the bankruptcy law
in a 1934 decision:
[I]t gives to the honest but unfortunate debtor…a new
opportunity in life and a clear field for future effort, unhampered by
the pressure and discouragement of preexisting debt.
To suit the different requirements of individuals and companies,
different types of bankruptcy procedures are instituted. Bankruptcy
Lawyers need to know the intricacies of filing and proper documentation
procedures so that appearances in court go smoothly. This will also
avoid delays or penalties caused by unorganized or erroneous filing.
The varied choices for filing can easily confuse a layperson filing for
bankruptcy. A client can file for straight bankruptcy, reorganization,
reorganization for municipality, reorganization of debts for farmers
with regular annual income or debt adjustment for individual who wishes
to keep some assets. Bankruptcy Attorneys assist individuals whereas
Business Bankruptcy Attorneys assist entities like a small business or
corporation. Both Attorneys specialize in assisting the client
determine which method would best suit their particular case.
There are varied stipulations to Bankruptcy Attorneys and bankruptcies
such as what bills need to be paid and what bills can be discharged,
under what chapter bankruptcy a debtor may file and how long payments
can be extended, and so on.
|
|
|
