A bankrupt is a person whose liabilities have exceeded his income. A bankruptcy suit can be filed under chapter-13 or chapter-7 whichever is suitable. A Bankruptcy code can be filed by both husband and wife provided both are liable or not. A company can also file bankruptcy.
Chapter-7:– It is simply called liquidation. A trustee appointed by the court sells the property of the debtor and pays off the creditors.
Chapter 13:- Instead of complete liquidation, the debtor submits a plan before the court for repayment of loans. A trustee (court appointed) receives the payment of the debtor in question and distributes the amount among his creditors.
Bankruptcy code prevents a debtor from being discriminated at his workplace for simply filing bankruptcy. A person may also have trouble getting long-term loan because his credit rating is very poor. However, bankruptcy doesn’t relieve you from the responsibility of:-Alimony;Child support;Student loans, etc.
The government has passed Bankruptcy Abuse Prevention Act,2005. The new law proposes additional bans on people filing for bankruptcy under chapter-7. The amount of repayment for filing bankruptcy under chapter-13 has been increased. In many cases, forms and relevant documents have to be electronically submitted. Hence, it is prudent on your part to let your hired Chicago Bankruptcy Lawyer to fight on your behalf. In many cases we have seen how big cities like- Chicago has taken the brunt of the recession.