Bankruptcy:
Chapters of all types for Corp's through Personal
There is probably no financial term that strikes fear into more people than “Bankruptcy.” Truth be told, the Bankruptcy Laws were put into effect to help individuals and businesses eliminate their debts or repay them under the protection of the bankruptcy court. Corporate America and wealthy individuals including General Motors and “the Donald” have utilized the bankruptcy laws to their benefit for years. Those same laws can work for you and we can help you take advantage of this strategy. But first, a brief description of the types of Bankruptcy is in order.
The four types of bankruptcy are: Chapter 7, Chapter 11, Chapter 12 and Chapter 13.
Chapter 7 (Straight Bankruptcy)
Chapter 7 Bankruptcies can be filed by individuals and businesses. In the case of a business, the company ceases operations and all the assets of the business are liquidated and the proceeds distributed to the creditors. In a Chapter 7 Bankruptcy for an individual, the individual is allowed to keep certain exempt property and other assets, if any, are sold to repay creditors. Unfortunately, most liens such as real estate mortgages survive under Chapter 7 bankruptcies. There are also other types of debt that are not discharged including: child support, income taxes less than 3 years old, property taxes, and student loans.
Chapter 11
Chapter 11 Bankruptcies can be filed by any business, whether it is a corporation or sole proprietorship, as well as individuals. In a Chapter 11 bankruptcy a company is reorganized and in most instances the debtor remains in control of the business operations and is subject to the oversight and jurisdiction of the court. If the business's debts exceed its assets, the bankruptcy restructuring results in the company's owners being left with nothing; instead, the owners' rights and interests are ended and the company's creditors are left with ownership of the newly reorganized company.
Chapter 12
Chapter 12 Bankruptcies can only be filed by an individual who makes a living from owning a farm or fishery. A Chapter 12 bankruptcy allows financially troubled farmers and fishermen to continue to operate their business while establishing a plan to reorganize or restructure their debts and pay off their creditors accordingly.
Chapter 13
Chapter 13 Bankruptcies can be filed by individuals who wish to pay their debts within a period of 3 to 5 years. A Chapter 13 helps individuals keep some of their possessions, such as a home, and allows them to catch up on missed payments while maintaining the financial resources needed to meet their everyday living expenses. In addition, a Chapter 13 Bankruptcy provides a way for the individual to restore their financial status.
At Universal Finance we want you to have the optimal opportunity to make a new start so you can succeed in the future. Based on the information you provide to us in your application, we will match you with established companies that we have screened for their experience and history of success in Bankruptcy Law and provide you with their access information.
In addition, there are other financial opportunities, products and services available to help you plan, build and maintain a solid financial future for yourself and your family. So please visit the other pages we have on our site such as Life Insurance, Real Estate Owned Investments, and other options. Then take the time to fill out and submit those applications so we can help you increase your probability of success.
