In the United States, bankruptcy law falls under the jurisdiction of the Federal Government. A bankruptcy attorney in Wellington, FL is a legal professional that is fully aware of all facets of the law, which consists of a great amount of legislative bills and statutes. There are additional laws that have been made by the judiciary, but they are more interpretations of bills and federal statutes that deal with the regulation of the act of declaring bankruptcy.
There are a number of forms of bankruptcy in the U.S., but three of them are the most common. Chapters 7, 11, and 13 are commonly declared; the debtor’s status is normally used to determine which. A business will normally turn to Chapter 11; individuals will normally declare Chapter 7 or Chapter 13, depending a great deal on their particular circumstances.
Bankruptcy laws are those that guide the process when a debtor wishes to have their debts forgiven. Declaring bankruptcy is not a simple matter of just “wanting to do it”; being allowed to declare under Federal law requires some very specific conditions. A person needs to prove to the court that the debt they have amassed cannot be paid. A bankruptcy law attorney in Wellington, FL guides the debtor, and files the petition on behalf of them.
The court demands that all of the accumulated debt is included in the information that supports the petition, and the debtor must also provide evidence of any income. Once the petition has been lodged, any and all of the creditors are free to make claims against the debtor’s assets or to raise objections and dispute the bankruptcy.
Under the rules that apply to Chapter 7, the individual declaring bankruptcy will be instructed by the court, under the auspices of a court-appointed administrator, to dispose of their assets. The income that results from the disposal of such assets are then applied to paying back a certain percentage of the accumulated debt. The order in which creditors are paid is laid down by the law, and not all debts are forgiven.
A bankruptcy attorney in Wellington, FL is well aware of what Chapter applies best to each client. Petitioners who have an income greater than that indicating poverty must usually declare Chapter 13. While Chapter 7 allows a bankrupt individual to be immediately discharged, those that file for Chapter 13 must establish a court-approved repayment plan. The plan and length of time the payments are in effect follow a schedule determined by Federal law.
Bankruptcy laws can be quite complex, and it is highly recommended that anyone considering declaring bankruptcy first consults with a Wellington, FL bankruptcy attorney. You are invited to contact the Law Offices of Sean I. Koplow. To know more, click here.