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The nuances of bankruptcy law are very important, even for individuals who aren’t into businesses or dealing with financial topics.
When finding the best bankruptcy law specialist in San Diego, Ronald E. Stadtmueller is the man you’re looking for. His expertise and understanding of bankruptcy laws are worth anyone’s time and penny. Clients who hire him and his law offices will get quick bankruptcy resolution and real debt relief.
Speaking of bankruptcy laws, you’ve come at the right time. We’ll be discussing what bankruptcy laws are today. You’ll also see the value of understanding these laws and their helpfulness.
Let’s go ahead and tackle the intricate topic of bankruptcy laws below!
What Is Bankruptcy Law?
In essence, bankruptcy is a legal procedure prompted by a person or business who is unable to pay their debts. Its purpose is to seek ways to get their debts reorganized or discharged by the courts.
There are many kinds of bankruptcy proceedings. But three of the most typically utilized by both businesses and individuals are Chapter 13, Chapter 7, and Chapter 11. Chapter 13 is the Wage Earner’s plans, Chapter 7 focuses on individual petitions, and Chapter 11 is business rehabilitation and reorganization petitions.
Although states may establish rules covering topics federal law does not address, bankruptcy matters nearly solely fall under federal law. Only debtor-creditor cases are handled by special bankruptcy courts around the country.
In general, people should file and contact the U.S. Bankruptcy Court regarding any bankruptcy-related claims.
Important Terms You Need to be Aware Of
As with anything, the field of bankruptcy laws has its jargon and terms. Understanding the nuances of bankruptcy law requires people to know these terms. With that said, let’s examine some of the terms you need to be aware of.
• Chapter 7 (Individual Bankruptcy)
Petitions filed under Chapter 7 of the U.S. Bankruptcy Code authorize individual debtors to discharge or settle their debts and liquidate their assets. Ronald E. Stadtmueller, a bankruptcy law specialist in San Diego, has an expert and proper understanding of bankruptcy law.
• Chapter 13 (Wage Earner’s Plan)
Petitions filed under Chapter 13 of the U.S. Bankruptcy Code authorize bankrupt debtors to request the court to grant them more time to pay their debts. The catch here is that the debtor must have a steady source of income.
• Chapter 11 (Business Reorganization)
Petitions filed under Chapter 11 of the U.S. Bankruptcy Code authorize businesses to reorganize their assets and liabilities and discharge or settle the business’ debts.
To free a debtor from the liability of paying off their debt.
Incapable of paying one’s debts when their due date arrives.
• Bankruptcy Petition
This entails the document that individuals or businesses file to the U.S. Bankruptcy Court that commences a bankruptcy proceeding. What can often be seen in the document are the debtor’s liabilities, assets, and debts.
Awareness of these terms and jargon will help individuals decide what type of bankruptcy proceeding they need.
Legal Consequences of Opening a Bankruptcy Proceeding
Loss of property is arguably the most well-known effect of bankruptcy. You may be required to surrender property for sale through bankruptcy procedures. In some cases, declaring bankruptcy can result in losing assets like real estate, cars, jewelry, antique furniture, and other belongings.
Instances wherein other people have been affected financially due to someone else’s bankruptcy have also happened. For example, if an individual’s parents co-signed a loan, they are liable to help pay off a portion of the debt once the bankruptcy is filed.
Last but not least, bankruptcy hurts your credit. Bankruptcies are seen negatively by prospective lenders and are recorded as bad data on your credit report. When creditors see a bankruptcy filing on your credit report, they could decide against giving you credit.
Creditors could also offer less favorable terms and higher interest rates if they do opt to provide you credit.
Get Expert Help From a Reliable Bankruptcy Lawyer in San Diego
Now that you know more about the nuances of bankruptcy law, it’s time to hire a bankruptcy law specialist in San Diego you can rely on. Ronald E. Stadtmueller is a name you can stake your finances on. He is always eager to listen and help clients with their bankruptcy needs.
Hire his expert services today by dialing (858) 564-9310. Don’t forget to read some of our other blogs as well. Learn how investors make money off debt and apply what you learn to your finances!