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March 31, 2015

Bankruptcy

 

To begin with, bankruptcy is the legal state when a person or a company is unable to repay the debts to its creditors. In most cases bankruptcy is initiated by the debtor. Yet, it needs to be imposed by a court order.

Obviously, there are bankruptcy laws with the help of which one may make the debt smaller or repay at least part of it. For instance, a person can repay the debt with the collateral which can be a vehicle or real estate.

Taking all that into account, bankruptcy laws exist in order to help a person get a fresh start which is usually realized in the following ways: by creating a repayment plan or by liquidating one’s assets in order to pay the debt.

Speaking about some technical details, the main chapters of the Bankruptcy Code include Chapter 7, Chapter 11 and Chapter 13. Most cases are usually filed under them. What is also important to keep in mind is that it is impossible to file a bankruptcy case in a state court due to the fact that exclusive jurisdiction regarding bankruptcy cases belongs to the federal courts. Do not hesitate to familiarize yourself with more information at … orderessay.net

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