Bankruptcy laws have been in place in this country from the beginning; in fact, it is specifically provided for by the United States Constitution. The guiding purpose of filing bankruptcy is to give those who are deeply in debt the opportunity to get a fresh financial start. Without some relief like this, families who fall behind in payments due to illness, or layoffs, or small businesses that suffer reverses would have no remedy. Some limited relief is essential so that those who fall into serious financial difficulties are not left penniless.
When most people think of bankruptcy laws, they think of a "straight" bankruptcy in which bills are wiped out and a person's assets may be sold for creditors. In fact there are a number of different bankruptcy programs and they are each quite different. The two programs which are available to most individuals and small businesses are Chapter 7 and Chapter 13.
Chapter 7 is a liquidation bankruptcy in which some kinds of bills can be discharged, for example, credit cards and medical bills, but your assets may also be put at risk, and not everyone is eligible for a Chapter 7. Chapter 13 is a reorganization bankruptcy for individuals and small businesses, and allows you to propose an affordable monthly payment to the bankruptcy court for all your bills.
There are other chapters in bankruptcy law but these apply to large companies or other kinds of debtors. Chapter 11 allows corporations and large business to reorganize, and is sometimes used by individuals who have too much debt to qualify for a Chapter 13. Central Coast Bankruptcy law firm in Salinas focuses on Chapter 7 and Chapter 13 bankruptcy litigation.
There are other programs in the Bankruptcy Code for cities which go bankrupt, and for farmers, but the vast majority of bankruptcy filings each year are filed under Chapters 7 or 13 of the Bankruptcy Code.
Central Coast Bankruptcy in Salinas can offer you the right bankruptcy services to match your needs. Contact us or call 1-831-783-0260 to learn how we can help.