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Bankruptcy Laws
By
Eddie Tobey
U.S. bankruptcy
laws fall under federal statutory law
provided by Title 11 of the United States
Code. They have been periodically revised
and amended to provide full and fair cover
for genuine cases and to eliminate the
potential for their unlawful abuse. Since
this is federal jurisdiction, individual
states cannot pass legislation governing and
regulating bankruptcy. US bankruptcy laws
have been standardized so as to have
universal application. However, state
governments can lay out parameters for the
definition of personal insolvency and
indebtedness.
The Supreme Court formulated US bankruptcy
laws in consultation with Congress, and all
supervision and administration of bankruptcy
proceedings fall under its jurisdiction. The
two fundamental kinds of bankruptcy in the
United States are Chapter 7 and Chapter 13
bankruptcy, which have been explained in
some detail earlier.
In filing for either Chapter 7 or Chapter 13
bankruptcy, a debtor’s obligations may vary
to some degree depending on the
circumstances. In Chapter 7 bankruptcy, the
filing party is required to make a full
disclosure of assets and liabilities,
including secured and unsecured property.
Within 30 days of making an application, the
applicant must declare whether he/she
intends to retain or surrender such assets.
These intentions must be executed within 45
days of filing.
The applicant must further provide a
complete list of creditors, after which the
bankruptcy court arranges for a meeting of
the applicant with all mentioned creditor.
During this meeting, all their doubts can be
raised and must be addressed to their
satisfaction.
Chapter 13 bankruptcy can be initiated by
either the debtor or his/her creditors.
After filing, a trustee is appointed to
supervise the debtor’s assets. Effectively,
these are then immovable asset which can
neither be sold nor transferred.
US bankruptcy laws basically benefit the
applicant debtor, and since recently
enforced amendments, the interests of
creditors are given equal priority.
Conclusion
Are you one
of the many that suffer from insurmountable
debt and wonder if bankruptcy is an option?
Give us a call at (203) 924-6700 or
contact us.
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