Bankruptcy Tips Offered By An Orem UT Bankruptcy Lawyer

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By Hans Gerhard


Bankruptcies are matters that fall under the jurisdiction of the federal courts. Any petition must therefore be filed in the appropriate federal court for that person or business. So Orem bankruptcy lawyer filings are sent to the U. S. Bankruptcy Court for the District of Utah.

This court is located in Salt Lake City. It is the only court that is authorized to handle bankruptcies in the state of Utah. State courts and federal district courts have no jurisdiction in these cases.

Individuals can file their own petitions, as can couples and any registered organization or business entity. A majority of bankruptcies are filed under three popular codes. One is Chapter 7 (liquidation) and the second one is Chapter 11 (reorganization). The third one is Chapter 13 (debt adjustment).

Liquidation proceedings under a Chapter 7 filing will liquidate the debtor's non-exempt assets. The proceeds are then distributed among creditors by the court-appointed trustee. Once it is over and done with, the debtor does not have to repay any more remaining debt to these creditors.

Corporations and other businesses that seek Chapter 11 protection are trying to avoid having to liquidate assets and close down the firm. They offer to reorganize their finances and operations and come up with a new repayment plan to pay off all the debt. An individual with a sufficient amount of income may seek Chapter 13 protection in order to adjust debt and repay it back within a set period (usually 3-5 years).

Regardless of the type, all of these filings need comprehensive records and supporting documentation. This includes a full listing of all assets, income and debt. The names of all creditors and the amounts owed to each one must be specified. If accepted, the petition instantly stays any and all creditor actions to recover debts owed by the petitioner. Any future recollection of said debts will occur only through the court appointed trustee's plan.




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