A legal status of a person or persons who is incapable of paying back debts owed to creditors. This includes entire businesses or individuals whose financial status is suffering because of unpaid debts or loans. Most of the time bankruptcy is levied by a court order to eliminate or repay a portion of debts under federal protection by the court. With two different types of bankruptcy deciding which one is the right choice for you is a challenge. Understanding what the many terms residing within bankruptcy will help you, your business or family to get a better idea of how to proceed if you face unpaid debts or creditors seeking your assets as a form of payment.
Figure out what kind of debt you face, and whether or not you are eligible to keep your property or not. This is the main difference between Chapter 7 and 13. Creditors can repossess property if you face secured debt, but a creditor cannot repossess your property if your debt is unsecured. Both types of bankruptcy are lengthy processes, but we are ready to help you through each and every step.