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Dallas Texas Bankruptcy Attorneys, Lawyers
and Law Firms
Bankruptcy
Law - Debt Relief
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Dallas
Texas Attorneys, Lawyers and Law Firms
Bankruptcy Law
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Bankruptcy
The formal condition of an insolvent person being declared bankrupt
under law. The legal effect is to divert most of the debtor's
assets and debts to the administration of a third person, sometimes
called a "trustee in bankruptcy", from which outstanding
debts are paid pro rata. Bankruptcy forces the debtor into a statutory
period during which his or her commercial and financial affairs
are administered under the strict supervision of the trustee.
Bankruptcy usually involves the removal of several special legal
rights such as the right to sit on a board of directors or, for
some professions that form part of the justice system, to practice,
such as lawyers or judges. Commercial organizations usually add
other non-legal burdens upon bankrupts such as the refusal of
credit. The duration of "bankruptcy" status varies from
state to state but it does have the benefit of erasing most debts
even if they were not satisfied by the sale of the debtor's assets.
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Bankruptcy Law
The legal method for a debtor to "discharge" or relieve
debt. Bankruptcy is a way for individuals or businesses owing
more money than they can pay to either work out a plan to repay
the money over time or to have their debt wiped out. While no
debtor is guaranteed a total discharge, most debtors who file
for bankruptcy are given such relief. One of the primary purposes
of the bankruptcy act is to relieve the honest debtor from the
weight of oppressive indebtedness and to provide the debtor with
a fresh start. Title 11 of the United States Code regulates the
filing of a bankruptcy. If the debtor initiates the bankruptcy
it is called a voluntary bankruptcy. If the creditor initiates
the bankruptcy it is called an involuntary bankruptcy. In an involuntary
bankruptcy the debtor has the opportunity to contest the petition.
While the debtor is either working out a plan or the trustee is
gathering the available assets to sell, the Bankruptcy Code provides
that creditors must stop all collection efforts against the debtor.
The Bankruptcy Code regulates what chapter you must file under,
what bills can be eliminated, how long payments may be extended,
what possessions you may keep, and all other details concerning
the bankruptcy.
For Dallas Texas Bankruptcy Attorneys, please
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