Bankruptcy Lawyers

Bankruptcy is a legal process that is complicated and involves detailed planning. Even a tiny error can be costly. It is mainly a liquidation proceeding where a debtor submits all his non exempt assets to the Bankruptcy Trustee. The trustee sells all the assets to a creditor to avail benefits. Exemption law in most cases allows the debtor to retain all his assets. And debtor receives a release in exchange and becomes relieved of all his responsibilities of paying those debts included in the bankruptcy forever. When you file for bankruptcy, planning is very essential. Bankruptcy is a legal process which helps a person incapable of paying his/her bills, eliminate his debts and helps them to get a fresh start. Reorganization is a bankruptcy preceding that enables an individual to reorganize their assets. Federal law provides the right to apply for bankruptcy. In federal court, all bankruptcy cases are addressed. Bankruptcy estate is the submission of all your debts and all of your property before filing for bankruptcy. Everything you own, whether you owe it or not— for instance, a house, a car, apparels, books, television, audio system, furnishings, instruments, boat, artworks, even inventory or stock certificates— is incorporated in your bankruptcy estate. Once the case has been filed, a trustee is being appointed to supervise the bankruptcy estate. The responsibilities of the trustee involves examining the debtor (the person who filed the case) to determine whether the petition he filed is true and accurate and whether or not there is any property or asset which can be sold to the creditor by the debtor. The law permits that specific property can be exempted, or expelled from the bankruptcy estate, and hence it gets outside the reach of the appointed trustee. Most of the files cases are often given the term “no asset” cases; which depicts that the debts are released and there is no assets for the trustee to sell off in order to satisfy the debt owed creditors.