Bankruptcy Chapters
Bankruptcy Chapters
A business or an individual can declare bankruptcy once they have ascertained that it has become impossible to pay off one’s creditors. It can give you a chance to start over from a financial point of view, as most of debts are relieved after bankruptcy as been filed.
Chapter 7, or liquidation bankruptcy, means that your “estate” – i.e., your assets – is sold in order to pay off your creditors. A reorganization bankruptcy can also involve the selling of assets, but more often than not you can retain a majority of your assets while your creditors’ needs are assessed.
Reorganization bankruptcies can be filed under the following guidelines:
* Chapter 9 – municipalities
* Chapter 11 – businesses and individuals with many assets
* Chapter 12 – farmers, fisherman
* Chapter 13 – individuals with steady income
* Chapter 15 – international cases
Contact us today to learn more about your options under the current bankruptcy laws. We’re here to help.
If you are facing over whelming debt, stressed to the point that it is affecting your health, well being, relationships and day to day life – pick up the phone and call 303.893.0833 or email us at roberson@justaskjane.info.
On the filing of a Chapter 7 petition, the court appoints a trustee. The trustee’s primary duty is to sell the assets of the bankruptcy estate, and then make distributions to creditors. The trustee’s commissions and other administrative expenses are paid first, followed by payment of priority debts (often taxes), and then general unsecured creditors on a pro rata basis.
In most Chapter 7 cases, the debtor’s business operations either had already ceased as of the filing, or stop once the case is filed. In some cases, to preserve an entity’s “going concern” value, the court permits the business to operate.
Need help with a Small Business Bankruptcy? The Lawyers of Custer Roberson can help. With our team of bankruptcy attorneys in the North Denver Metro area we are conveniently located.
Call us today. 303.893.0833
