Rocky Mountain Law - Family Law - Divorce - Probate - Estate Administration - Bankruptcy - Chapter 7

  Can an individual file for bankruptcy? Tim Cella used to work at several law firms Short answer: yes. Long answer: get a  bankruptcy lawyer  to help you. Individuals can file for bankruptcy under specific circumstances. Bankruptcy is a legal process that helps individuals or businesses that are unable to repay their debts to get a fresh financial start by liquidating assets to pay off debts or by creating a repayment plan. I’ve worked as a paralegal helping literally hundreds of people file for bankruptcy. Here are some key points regarding individual bankruptcy filings: Types of Bankruptcy for Individuals (most common) : Chapter 7 Bankruptcy : Also known as "liquidation bankruptcy," Chapter 7 involves the sale of nonexempt property to pay off creditors. Any remaining eligible debts are typically discharged. Chapter 13 Bankruptcy : Also known as "reorganization" or “wage earners bankruptcy” — Chapter 13 allows individuals to create a repayment plan to pay off debt...

  What happens to a company's debt when it goes bankrupt? Is it erased or does someone else have to take responsibility for paying it off? Tim Cella used to work at several law firms I’ve been involved in several different bankruptcy cases with a  business lawyer . I’ll try to explain as best as I can. When a company goes bankrupt in the United States, what happens to its debt depends on the type of bankruptcy filed and the specific circumstances of the case. In general, bankruptcy provides a legal framework for managing debts that a debtor cannot repay. There are several chapters of bankruptcy in the US, but the most common ones for businesses are  Chapter 7 ,  Chapter 11 , and  Chapter 13 . 1.  Chapter 7 Bankruptcy : In Chapter 7 bankruptcy, also known as liquidation bankruptcy, the company's assets are sold off to repay creditors. Any remaining debts that are eligible for discharge are typically erased. However, it's essential to understand that not all ...