Types Of Cases Handled By Bankruptcy Lawyers
In the law world of today, there are different types of bankruptcy cases that are categorized, recognized and are sorted into different categories. There are these bankruptcy cases for the individuals who find themselves into deep trouble and hence cannot get rid of their debts. Debts are carried forward once they are not paid on time. As you know, money has a capacity to grow over time and hence interest rates are applicable on any form of debt which goes on increasing. In cases like these, the individuals who carry the trademark of debt on themselves have no way out and hence they lack payment to their creditors. In the article to follow, we are going to explore the various facets of the cases that are handled by the bankruptcy lawyers.
It is very much essential to identify the type of bankruptcy that your client has undergone due to the ever increasing debts on him. It will help you a lot to qualify, register your case in the court of law and fight the case without any hindrances against the people who have accused you of money to be paid to them. Each of the types of cases that are listed under the bankruptcy are equipped with the qualifications that must be necessarily met in order to fight the case in the court of law using the legal terms and conditions against the lawsuit filed for you. Some forms of bankruptcies are better than others given a proper case scenario. Here is an overview in brief about the different cases that are fought under bankruptcy.
No repayment plan
In this type of bankruptcy, there is not repayment plan that is to be submitted in the court of law. This type however requires the mandatory condition to be met, i.e. to liquidate the assets that you possess under your business name. The assets also enlist the various types of properties that are owned by the person who has taken the debt and who cannot pay it back on time. There is a certain kind of property that is termed as ?exempt? which means that the property does not have to be sold to the creditors. And hence the liquidation of the exempted property is not required. There is a means test which will determine of your business can claim to be bankrupt using the rules and regulations that govern legally on this particular type of bankruptcy. Businesses generally do not qualify for the same. If the individuals have the liquidation of assets that are appropriate, it is not required by them to repay the debt over a certain period of time.
Regular income bankruptcy
In this type of bankruptcy, there are cases where there is a regular flow of income to the business or an individual in some or the other way. Due to the bon of the regular inward flow of income, there is a chance for the individual or rather a business owner to pay the debt regularly in a partial or a full payment basis, of course over a given period of time. The trustee determines as to how the repayment plan must be implemented in order that the repayment of the loan or the debt taken is on a regular and a timely basis so as to reduce to compound interest on the loan amount. These types of bankruptcy cases are eligible to be filed by the individuals, people who are self-employed, and the owners of the businesses which have not been incorporated. There are a number of restrictions on the individuals who wish to file bankruptcy under this type of case. A background check on the individual is made as to if he has already filed for the bankruptcy in any other form in the last 6 months or rather 180 days to be very precise. If yes, then the individual is barred from being qualified.
As the name refers, it is very rarely used by the individuals in order to claim a type of bankruptcy. However, there also certain special cases under which an individual may qualify. This type of bankruptcy to be filed is a lengthy procedure and it may lead to years of hearings in the court of law to be made. This means it is not the best choice for the individuals and the business owners who are in need to file the bankruptcy as soon as possible. The fee of the lawyer involved is very high since it is a special type of case.
This is used generally by famine stricken farmers, commercial fishermen, and mostly by the people who rely on an annual income on the regular basis. Thus in this article, we have explored the various types of cases handled by the bankruptcy lawyers.
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