In the United States, bankruptcy law falls under the jurisdiction of the Federal Government. A Las Vegas bankruptcy attorney is a legal professional that is fully aware of all facets of the law which consists to a great extent of legislative bills and statutes. There are laws that have been made by the judiciary, but they are more interpretations of bills and federal statutes that deal more with the regulation of the act of declaring bankruptcy.
There are a number of forms of bankruptcy in the US but of them, three Chapters are the most common. Chapters 7, 11 and 13 are commonly declared; the debtor’s status is normally used to determine which will be used. A business will normally turn to Chapter 11; individuals will normally declare Chapter 7 or Chapter 13 depending a great deal on their particular circumstances.
Bankruptcy laws are those that guide the process when a debtor wishes to have their debts forgiven. Declaring bankruptcy is not a simple matter of just “wanting to do it” being able to declare under Federal law is a very different matter. A person needs to prove to the court that the debt they have amassed cannot be paid, it is the Las Vegas bankruptcy attorney that guides the debtor and files the petition on behalf of the debtor client.
The court demands that all the accumulated debt be included in the information that supports the petition, the debtor must also provide evidence of any income. Once the petition has been lodged any or all of the creditors are free to make claims against the debtor’s assets or to raise objections and dispute the bankruptcy.
Under the rules that apply to Chapter 7, the individual declaring bankruptcy will be instructed by the court, under the auspices of a court appointed administrator to dispose of his assets, the income that results from the disposal of such assets are then applied to paying back a certain percentage of the accumulated debt. The order in which creditors are paid is laid down by law, and not all debts are forgiven.
The Las Vegas bankruptcy attorney is well aware of what Chapter applies best to the client. For those petitioners who have an income which is greater than that indicating poverty, they are usually forced to declare Chapter 13. Whereas Chapter 7 allows a bankrupt to be immediately discharged, those that file for Chapter 13 must establish a court-approved repayment plan. The plan and the length of time it is in effect follow a schedule determined by Federal law.
Bankruptcy laws can be quite complex, and it is highly recommended that anyone considering declaring bankruptcy do so with a Las Vegas bankruptcy attorney. You are invited to contact the Law Office of Hayes & Welsh.
