{"id":118295,"date":"2020-10-11T09:17:50","date_gmt":"2020-10-11T13:17:50","guid":{"rendered":"https:\/\/antiguanewsroom.com\/?p=118295"},"modified":"2020-10-11T09:17:50","modified_gmt":"2020-10-11T13:17:50","slug":"what-are-the-u-s-legal-regulations-regarding-bankruptcy","status":"publish","type":"post","link":"https:\/\/antiguanewsroom.com\/what-are-the-u-s-legal-regulations-regarding-bankruptcy\/","title":{"rendered":"What Are the U.S. Legal Regulations Regarding Bankruptcy?"},"content":{"rendered":"
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At the mention of the word bankruptcy, most people think about a scary monster that comes to spell financial doom and misery. It is often confused for going bankrupt or being declared so. On the contrary, filing bankruptcy is simply the legal process when debtors seek relief through the courts when unable to pay their creditors for one reason or the other. In this piece, we shall talk a bit about the legal regulations available in the US regarding bankruptcy. Before that, however, it is important to understand some basic things about the bankruptcy process.<\/span><\/p>

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The Bankruptcy Process\u00a0<\/span><\/h2>\n

For starters, bankruptcy is a legal process that takes time and resources in some instances. This largely depends on which type of bankruptcy you file, or which chapter the debtor falls in. The debtor could be an individual, business, corporate, state agency, or any other legal entity that runs into financial difficulties and is unable to pay their creditors.<\/span><\/p>\n

Since it involves petitions and hearings in a court of law, filing bankruptcy in the U.S requires legal counsel, interpretation, and representation. This is especially because there are different laws and regulations for different bankruptcy chapters. As the experienced attorney Tristan Brown and his team at <\/span>https:\/\/tlbrownlaw.com\/<\/span><\/a> point out, a debtor that qualifies for chapter 13 bankruptcy may not be eligible to file bankruptcy under chapter 7. These are some of the many reasons one needs an experienced bankruptcy attorney when seeking relief from debt through bankruptcy.<\/span><\/p>

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Also, depending on the type and outcome of the bankruptcy case, the debtor may end up losing or keeping their individual property and even company assets. Some end up getting a full acquittal or forgiveness, so they won\u2019t have to pay their creditors back. Some cases take longer than others, whereas others are finalized within a short time. In a nutshell, filing for bankruptcy can be an easy or complicated process depending on how informed you are, legally speaking. Let\u2019s now look at a few legal regulations applicable in the U.S. regarding Bankruptcy law based on the various chapters available.<\/span><\/p>

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Chapter 7: Liquidation\u00a0<\/span><\/h2>\n

This is the most common form of bankruptcy where a trustee is entitled to collect the debtor’s non-exempt property, sell it, and distribute the takings to the creditors. In this case, the debtor has no liability for any <\/span>discharged debts<\/span><\/a> whatsoever. Legally, however, many state laws allow the debtor to keep the essential property.<\/span><\/p>\n

In 2005 the U.S. bankruptcy law significantly changed, making it tricky for consumer debtors to file for bankruptcy. That is why the state allows debtors to keep the essential property even though some of the property can be seized.\u00a0<\/span><\/p>

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Therefore, debtors who are in business can go about their business to avoid liquidation even after filing bankruptcy chapter 7. After all, the main purpose of bankruptcy is to discharge certain debts to give a debtor a “fresh start”.<\/span><\/p>\n

Chapter 9: Reorganization of Municipalities\u00a0<\/span><\/h2>\n

This chapter of the Bankruptcy Code provides for municipalities’ reorganization, like cities, towns, villages, counties, taxing districts, municipal utilities, and schools. The purpose of this chapter is to provide financially-troubled municipalities protection from its creditors while it develops and negotiates a strategy for adjusting its arrears. The <\/span>reorganization of debt<\/span><\/a> can be accomplished by extending debt maturities, slashing the interest, or endorsing the debt and obtaining a new loan. In this case, there is no provision for liquidation of the municipality’s assets.\u00a0<\/span><\/p>

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In this bankruptcy chapter, the court functions are generally limited to several things. These include approving or declining the petition, creating a debt adjustment plan, and ensuring the plan is implemented. However, the debtor should fulfill certain requirements for them to be considered eligible. Some of these include the following:<\/span><\/p>

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