Get Out Of Debt Bankruptcy Tips Offered By An Orem UT Bankruptcy Lawyer

By Hans Gerhard


The federal court system has complete jurisdiction over bankruptcies in the United States. Every petition has to be filed with the court that covers the area of the applicant's residence or place of business. So an Orem bankruptcy lawyer's petitions on behalf of clients must be filed with the District of Utah U. S. Bankruptcy Court.

This court is located in Salt Lake City. It is the only court that is authorized to handle bankruptcies in the state of Utah. State courts and federal district courts have no jurisdiction in these cases.

Individuals can file their own petitions, as can couples and any registered organization or business entity. A majority of bankruptcies are filed under three popular codes. One is Chapter 7 (liquidation) and the second one is Chapter 11 (reorganization). The third one is Chapter 13 (debt adjustment).

A Chapter 7 filing will initiate liquidation of the debtors' assets. The proceeds will be distributed to the creditors by a trustee appointed by the court. This ends the process, and the debtor is then free of all the debts that were listed.

Chapter 11 is a means for reorganization, and is typically made use of by corporations. It allows the company to avoid liquidation and instead offer a plan to reorganize their operations and finances and pay back creditors over time. Chapter 13 is the code that allows an individual with an income to adjust debts and pay them back over a specified period that is usually in between three to five years.

All of these filings need to include detailed information and supporting documents. A complete listing of all assets, debts and income is required. So is a full list of all creditors, including their names and the amounts that are owed to each one. If the court accepts it, a stay is immediately issued to put a stop to all creditor actions aimed at recollecting debts. The debts will then only be repaid through a plan approved by the court-appointed trustee.




About the Author:



No comments:

Post a Comment