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strong>Anderson Bankruptcy Attorney--Chapter 7, and 13 Bankruptcy Information
Bankruptcy is a term that has been used for a long time. Today, it means being financially unable to pay one's debts as they become due or to have incurred more debts than assets.
Bankruptcy is also the statutory procedure under federal law by which a debtor undergoes a judicially-supervised liquidation or reorganization for the benefit of those whom they owe money, otherwise known as their creditors. The debtor is usually relieved of most of his debts through what is known as a discharge--the debtor's property becomes the bankruptcy estate.
Filing bankruptcy is filed in federal court, thus ensuring some uniformity throughout the United States. However, there are certain variations from state to state relating to what assets an individual is allowed to keep, otherwise known as exemptions. It is imperative therefore that debtors should consult a local bankruptcy attorney like our Anderson bankruptcy attorney to have the best representation when filing for bankruptcy.
The vast majority of bankruptcy cases are filed voluntarily by the debtor although there are rare situations wherein creditors are permitted to file involuntary bankruptcy cases against a debtor who is generally not paying their debts as they become due. Here, three or more petitioning creditors who are owed a total of at least $10,000 are required. If there are less than twelve creditors in total, then the involuntary petition may be filed by one creditor who is owed at least $10,000.
In Chapter 7 bankruptcy, the debtor files a petition with the court, which includes detailed financial information about his assets, debts and income, and a list of the assets claimed as exempt. The papers filed with the court are executed under penalty of perjury and usually go through a court process which takes about 3 to 4 months.
Chapter 13 bankruptcy, on the other hand, is a debt adjustment procedure for individuals with regular income, who have unsecured debts under $269,250 and secured debts under $807,750. Whatever it is you're filing for as long as it's about bankruptcy, you do need our good Anderson bankruptcy attorney to guide you all throughout the process and to guard your best interests.
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