Get Out Of Debt Bankruptcy Tips Offered By An Orem UT Bankruptcy Lawyer

All matters regarding bankruptcies are federal cases. Petitions must be filed with the appropriate court located in the state of the individual or business concerned. For example, an Orem bankruptcy lawyer will be filing petitions in the United States Bankruptcy Court for the District of Utah.

This court is located in Salt Lake City. It is the only court that is authorized to handle bankruptcies in the state of Utah. State courts and federal district courts have no jurisdiction in these cases.

Individuals can file their own petitions, as can couples and any registered organization or business entity. A majority of bankruptcies are filed under three popular codes. One is Chapter 7 (liquidation) and the second one is Chapter 11 (reorganization). The third one is Chapter 13 (debt adjustment).

Liquidation proceedings under a Chapter 7 filing will liquidate the debtor\’s non-exempt assets. The proceeds are then distributed among creditors by the court-appointed trustee. Once it is over and done with, the debtor does not have to repay any more remaining debt to these creditors.

Chapter 11 is a means for reorganization, and is typically made use of by corporations. It allows the company to avoid liquidation and instead offer a plan to reorganize their operations and finances and pay back creditors over time. Chapter 13 is the code that allows an individual with an income to adjust debts and pay them back over a specified period that is usually in between three to five years.

Complete financial information and records are required to be submitted for all these filings. This includes the applicant\’s income, assets and debts. All the names of the creditors and the exact amounts owed to each of them must be listed. Once the judge accepts the filing, a stay is issued to stop all listed creditors from taking any further recollection measures. The only way the debt will now be paid is through a plan approved by a court-appointed trustee.

Find an overview of the benefits of using the services of an Orem bankruptcy lawyer and more information about a reliable attorney at now.

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