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Bankruptcy Lawyers

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Nobody wants to go bankrupt. Unfortunately though, sometimes there is no choice. If a person or business simply does not have the money to pay their creditors, filing for bankruptcy may be the best option. A competent bankruptcy lawyer can help their client navigate the complicated maze that is bankruptcy law, and hopefully, arrive at a favorable solution to their financial problems.

In the United States, there are a number of different forms of bankruptcy. These different forms of bankruptcy are referred to as being differently numbered “chapters.” For instance; there is a form of bankruptcy called “chapter 11 bankruptcy”, and a form of bankruptcy called “chapter 13 bankruptcy.” The person or entity who files for bankruptcy will only be able to file for the type of bankruptcy that is appropriate to their financial status.

The most common type of bankruptcy is chapter 7 bankruptcy. Chapter 7 bankruptcy is also referred to as “liquidation” bankruptcy. In this form of bankruptcy, the debtor’s remaining assets are sold off, or, “liquidated.” The proceeds from this liquidation are then used to pay off the creditors. At the end of this process, the majority of the debtor’s remaining debts are forgiven, or, “discharged.” There are certain debts that can’t be discharged however. These include taxes, alimony payments and college loans. There are also certain assets that the debtor gets to keep. These are called “exemptions.” Chapter 7 bankruptcy usually is applied to individuals.

Another common form of bankruptcy is chapter 13 bankruptcy. Chapter 13 bankruptcy is also referred to as “wage earners” bankruptcy. This form of bankruptcy applies to people who hold a steady job or otherwise have a dependable source of income coming in. In chapter 13 bankruptcy, the debtor works out a plan to pay back his or her debts over a period of time. The payments are made to a trustee, who in turn gradually pays off the creditors. After the specified time period has elapsed, the remaining debts are discharged.

There are yet more types of bankruptcy that apply to different types of entities. There is a type of bankruptcy that applies to municipal areas for instance. There is even a type of bankruptcy that applies primarily to farmers and fishermen.

If you are searching for a bankruptcy lawyer in Sacramento, you or your business may be saddled by a crippling debt. The nuances of bankruptcy law can be very complex. It pays to have a good bankruptcy lawyer who can help figure out how to negotiate the most favorable settlement possible for your situation.

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