When a company or a person is not able to repay a loan, the individual or the company is regarded as bankrupt. Occasionally companies incur heavy financial losses. For instance, a printing company gets 80 percent of its total income from a single publisher. In case the publisher diverts its order to a different company, the printer loses a large portion of its total income. The printing firm becomes bankrupt. Bankruptcy concerns two parties: the debtor and the creditor. The debtor is the party in debt, who owes money to the creditor. A debtor might be a company or a person.
The lender is an organization or individual to whom the debtor owes money. Most bankruptcy cases involve several creditors. There are basically 3 types of bankruptcy. When a company is bankrupt, the trustee, an individual appointed by the court, sells all of debtor's non exempt assets so the debts might be repaid. This kind of bankruptcy is known as bankruptcy liquidation, or Chapter Seven Bankruptcy. Individuals, corporations and partnerships file this bankruptcy. Suppose a business or a person is bankrupt, but carries on to function, maintains ownership of all assets, and tries to work out a reorganization plan to pay off creditors.
This is known as Chapter 11 bankruptcy. Typically, businesses and people who've unbearable debt file this bankruptcy. An individual owns and controls his assets and works out a repayment plan with his creditors. This is known as chapter 13 bankruptcy Tampa. Though it's like Chapter 11, this bankruptcy involves only individuals. The debtor maintains control and ownership of the assets. Whether it's a company, business or a person, once bankrupt, the best person to turn to for advice and help will be a bankruptcy lawyers in Tampa. The bankruptcy attorney offers help to the client, who can be a person, company or business, as described below.
He collects and file all the bankruptcy documents with the bankruptcy court. After this, the creditors are informed by the court clerk that a petition has been filed. Thereafter, a meeting of creditors is held at the court, with the trustee acting as President. It's obligatory for the debtor to attend this meeting. After this, on the direction of the court, the trustee sells all of debtor's non exempt assets for the advantage of the creditors. Lastly, the debtor is discharged and all debts, with a few exceptions, are written off. galewski.com, the official website of the Florida Galewski Law Group, PA, publishes several pamphlets, including one entitled Bankruptcy, for the public. The web site also has an attorney referral service to locate Bankruptcy Attorney in Tampa FL. Florida Lawyers provides detailed info on Bankruptcy Lawyer in Tampa FL, Florida Business Lawyers, Florida Criminal Lawyers, Florida Family Lawyers and more.
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