Bankruptcy
When our country was founded and our Constitution framed, Bankruptcy became part of Article Two of the Federal Constitution. It is a Constitutional right and that is why Bankruptcy proceedings are in the Federal Courts. All civilized countries have provisions for bankruptcy. We no longer have "debtor's prison."
There are a multitude of reasons why a person has to file bankruptcy. Illness, sudden loss of employment, unfortunate credit planning, failure of a business, or just plain bad luck, to name a few.
Title 11 of the United States Code, referred to as the Bankruptcy Code, contains the Chapters that relate to Bankruptcy. Chapter 11 contains the provisions that concern business reorganizations; Chapter 13 relates to consumer debts and reorganization; Chapter 12 is for a farm reorganization; and Chapter no. 7 is the general bankruptcy chapter for individuals and all other entities and is about liquidation and a "fresh start."
Sometimes it is possible to reorganize a person's financial affairs without the need to avail oneself of the benefits of Bankruptcy. Negotiations with creditors without filing for relief is possible under certain circumstances.
This is were lawyers with the experience and expertise in such matters can help. Our office has such experience and expertise to help you get a "fresh start" and relieve you of the burden of being harassed by creditors and help you and/or your business get started in the right direction once again.
We can and know how to help.
This article is intended to highlight areas of interest for our clients and others. It is not intended to be legal advice and it is not a substitute for advice and consultation with your lawyer.