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The time may come when an individual or entity (company etc.) can no longer pay their bills in a timely manner or their debts exceed the value of their non-exempt assets. Instead of feeling ashamed and desolate, you should take action to protect your property (exempt property) and make a fresh start by declaring bankruptcy. Under the current recession and decline in the economy, millions of debtors file for bankruptcy every year. Businesses have suffered greatly with the decline in economic growth. Statistics show that a majority of start-ups fail in the early years of existence. Loss of employment, illnesses and other events can send an individual into the spiral of debt. At times like this debt relief may be the only option available. Entities that seek debt relief under the Bankruptcy Code might consider filing a petition under many different chapters of the Code depending on their state of affairs. The most commonly used form for filing for bankruptcy is Liquidation under Chapter 7. The practice of Liquidation involves the appointment of a trustee whose duty is to collect the non-exempt property of the debtor, and distribute the proceeds of the sale of these properties among the creditors. Under Chapter 7, debtors are allowed to retain essential property. Chapter 7 cases are defined as “no asset” cases as the debtors can retain all their exempt properties. In this situation the entity that is facing liquidation will surrender all their non-exempt property in exchange for the elimination of unsecured debt. Secured property like a house or car can be retained. The party may have to forgo some cash, bank savings, stocks, bonds and other investments, any second car or vacation home, family heirlooms and valuable collections etc. As soon as a party files for bankruptcy an automatic stay is imposed that prohibits the commencement, enforcement or appeal of actions and judgements, judicial or administrative against a debtor for the collection of a claim that arose prior to the filing of the bankruptcy petition. It also prohibits collection actions and proceedings directed towards the property of the entity. Without the protection of the automatic stay that Chapter 7 and other petitions provide, creditors might make a bee line to the courthouse to improve their positions against the debtor. This action would protect a debtor’s business that was facing temporary financial difficulty but would be viable in the long run. Such actions would also be unfair to similarly situated creditors who would not approach the courthouses. It’s the job of your attorney to optimize application for exemptions and allow you to keep as much of your personal belongings, cash, savings, benefits, savings as possible while facing bankruptcy. Geneva, IL residents can consult experienced attorneys to safeguard their interests. Bankruptcy Geneva, IL - If you are looking for efficient attorneys while filing for bankruptcy, Geneva, IL based Petti Murphy & Associates have a wide range of legal experience for satisfying their client's requirements.
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