Bankruptcy is a legal process used by individuals, businesses, or municipalities when they are unable to pay their debts and financial obligations. The Bankruptcy Code describes various forms of bankruptcy, each designed to offer a financial “fresh start” for those overwhelmed by debt or seeking protection from creditors while they restructure. Through bankruptcy, individuals can often “discharge” many types of debt after liquidation or reorganization, allowing them to regain financial stability.

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Certain debts, such as secured claims, are generally not dischargeable, and other types of debts may also be excluded from discharge either automatically or through a bankruptcy court’s decision. While businesses cannot achieve a discharge, they have the option to either liquidate their assets or continue their operations by reorganizing. Creditors may view bankruptcy as an opportunity to receive payment or partial payment on their claims while reducing the costs and complexities of debt collection.

It’s important to use an attorney for filing bankruptcy because they understand the complicated laws and can handle legal issues that might come up. Attorneys make sure you follow all the rules and can help in court if needed. In contrast, preparers usually just help with filling out paperwork and don’t have the legal knowledge to deal with more complex problems.

Bankruptcy can be a very use full tool for individuals or businesses to get a new financial start. But it is important to make sure that your best option is to declare Bankruptcy. To make that decision call us for free and we will see if Bankruptcy is the best fit for you or not.