Bankruptcy protection is given when an individual or business files a federal bankruptcy case. Laws governing bankruptcy in the United States are referred to as the Bankruptcy Code
. The laws were created to assist debtors who are struggling financially to deal with the debt owed to creditors. In some cases, the debts are wiped out. In other cases, debts are restructured.
Filing bankruptcy stops creditors from taking legal action against the debtor. It stops any actions already in place. This is called an Automatic Stay which is a court order that prohibits creditors from taking any adverse actions against the debtor. It also protects the assets of the debtor and helps to ensure they will not lose all of their possessions. Once the “stay” is in effect creditors can no longer start or continue legal action.
Consumer bankruptcy has its own specific rules and regulations. Bankruptcy protection is present in all the common types of bankruptcy, including Chapter 7
and Chapter 13
. The process of filing for bankruptcy protection is usually started by the debtor’s attorney filing a bankruptcy petition with the court. An experienced bankruptcy attorney will be able to assist in the filing of the bankruptcy case.
For individuals, Chapter 7 bankruptcy protection involves cancellation of most debts, along with the possible liquidation of unprotected or non-exempt property. Chapter 13 is a structured plan to make a payment to a trustee based on what you can afford.
If you plan to file bankruptcy you need experienced, competent legal guidance and Coons & Crump, LLC
, is here to help. For more information about our services and to schedule your free consultation, check out our website or contact
one of our offices today.
– Call today! 785-783-2360