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.

The courthouse for this court is based in Salt Lake City. Any and all bankruptcies originating in the state of Utah are handled by this court. Other state courts and even the federal district courts have no say over these matters.

The entity filing a petition may be an individual, married couple or a registered business. There are three main types of filings that are most commonly made use of. They are Chapters 7, 11 and 13.

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.

Corporations and other businesses that seek Chapter 11 protection are trying to avoid having to liquidate assets and close down the firm. They offer to reorganize their finances and operations and come up with a new repayment plan to pay off all the debt. An individual with a sufficient amount of income may seek Chapter 13 protection in order to adjust debt and repay it back within a set period (usually 3-5 years).

Regardless of the type, all of these filings need comprehensive records and supporting documentation. This includes a full listing of all assets, income and debt. The names of all creditors and the amounts owed to each one must be specified. If accepted, the petition instantly stays any and all creditor actions to recover debts owed by the petitioner. Any future recollection of said debts will occur only through the court appointed trustee’s plan.

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