Bankruptcy 101

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Bankruptcy 101

Many people feel that they have hit their debt limit and are out of options. Bankruptcy is a process through the federal court system that allows a debtor to either discharge, reorganize or pay back a portion of their debt so that the my get back on this their life. This is a fairly involved process and is regulated by the Federal government. Article I, Section 8, of the US Constitution authorizes Congress to enact “uniform Laws on the subject of Bankruptcies.” Congress enacted the “Bankruptcy Code” in 1978.

The Bankruptcy Code, which is codified as title 11 of the United States Code, has been amended several times since its enactment. It is the uniform federal law that controls bankruptcy filings and proceedings

There are several different codes that you can file under when seeking bankruptcy protection:

Chapter 7. LiquidationChapter 9. Municipality BankruptcyChapter 11. Reorganization under the Bankruptcy CodeChapter 12. Family Farmer Bankruptcy or Family Fisherman BankruptcyChapter 13. Individual Debt AdjustmentChapter 15. Ancillary and Other Cross-Border Cases

Most individuals find themselves filing under wither Chapter 7 or Chapter 13 of the Bankruptcy Code. Your eligibility to file under Chapter 7 or Chapter 13 of the code is determined by several factors. Your income, number of dependents and financial commitments all come into play when calculation what chapter you file under. Many consumers seek Chapter 7 bankruptcy because of its ability of "discharge" of liquidate your eligible debts under the code.

Under a Chapter 13 bankruptcy the trustee (the representative of the government), will work with the debtor and the debtor's representative to determine a plan to pay off whatever percentage of the debt that the debtor's income allows, and enter into a multi-year plan to pay it off. Upon successful completion of this plan, the debts a then discharged by the court.

The process of Bankruptcy is involved and has certain pitfalls that if not complied with could leave the debtor ineligible to file for bankruptcy protection for another eight years. At Garrett Law Center, PLLC your first consultation about the possibility of you and your family filing for bankruptcy protection is always free. Give us a call today to set up your free no obligation face to face appointment.

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Garrettlawcenter.com

401 S Boston, Ste. 2201

Tulsa, OK 74103888.655.2923 Tel918.895.7217 Fax

Garrett Law Center

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