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Debt Relief – Insolvency – Bankruptcy Information » Bankruptcy Help » File Bankruptcy ? Important Fact to Consider

File Bankruptcy ? Important Fact to Consider


The term “File Bankruptcy” refers to a legal process where a debtor declares himself or his business unable to make payments of outstanding debts. A trustee, also known as Official Receiver or an Insolvency practitioner is appointed to manage your financial issues for a limited time period and make the payments, if any. Federal government and the federal law governed bankruptcy laws in the United States and give legal right to US residents and business associates to file it in their respective towns and cities.

Types of Bankruptcy

There are different types of bankruptcies that one should need to know:

Liquidation Bankruptcy: It is introduced in chapter 7 of bankruptcy law.  It is basically meant to forgive all debts by analyzing the financial standing of the debtor.
Adjustment of Debt: Chapter 13 which is also known as adjustment of debt is only filed by the person who has stable job and good repayment ability.

Business Class Bankruptcy: Bankruptcy under Chapter 11 is meant for business class where court allows the companies to find out the way to settle the debts easily.
Bankruptcy for Municipalities: Similar to chapter 11 and 13, chapter 7 generally applies to municipalities that allows for redevelopment. Orange country, California is a great example of Chapter 9 in the year 1994.
Bankruptcy for Fishermen and Farmers: Chapter 12 is drafted for fishermen and farmers. Here, the debtor is required to pledge some security and allows reconstruction of debt.


Bankruptcy Help

In the last few years, it has been noticed that the majority of bankrupts being under the age of 30. However, it is important for a debtor to consider bankruptcy as a last resort and should try other methods to fight with the consequences of large debts. Debt consolidation loans are perfect to consolidate numbers of non payments into a single loan. File bankruptcy after considering all the positive and negative points.

Anjali Singh is pursuing Post Graduating in English Literature. She is working as content writer from last one and half years and writing articles on different topics.


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