answers to legal questions

for the public public    for attorneys attorneys   bookmark lawfiles  rss for free legal advice
Submit your legal question to attorneys.
Legal questions, articles, and news.
Attorneys by:
   advanced search lawyers, we need your help.    
Home > Law & Legal Topics > Bankruptcy Law

» Bankruptcy Law:
Bankruptcy law is the branch of law for a debtor whose property is subject to administration under the bankruptcy laws for the benefit of his creditors.

There are two types of bankruptcy proceedings, namely, liquidations and payout plans. Chapter 7 bankruptcy is the liquidation chapter in which the debtor gives up all non-exempt assets, the Trustee in Bankruptcy sells these assets, and the proceeds are distributed pro-rata to creditors.

The benefit of a Chapter 7 liquidation to a consumer debtor is that the debtor receives a discharge of all preexisting debts. In this way liquidation provides a fair distribution of the debtor's assets and it provides a "fresh start" for the debtor.

Chapter 13 for consumers and Chapter 11 for businesses (and some consumers with very large debts) are payout plans. These plans allow the debtor to propose to keep all assets in exchange for promising to pay off debts over a period of time out of future income. This can allow the debtor to avoid fire-sale prices in liquidating property and provide higher returns for creditors.

Do you have a bankruptcy law question? If so, submit your bankruptcy law question to attorneys using our site.

» Bankruptcy Law Q&As:

More Bankruptcy Law Q&As...
» Bankruptcy Law Articles:

More Bankruptcy Law Articles...

» Free Bankruptcy Law Forms:

More Free Legal Forms...

Do you have a legal question you would like to know the answer to? If so, submit your free legal question to attorneys using our site.


Help us Keep Going
 About    Free Legal Advice    Legal Terms    Bookstore    Partners      Sitemap    Contact Us    Disclaimer    Terms of Use
 For Attorneys    Attorney Join    Attorney Login
 For Advertisers and Media    Advertise    Logos
  KDM Properties, LLC © All Rights Reserved