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When you see the names of entities that have lately filed for bankruptcy, it would make you realize how common debt relief has become in the United States. Lehman Brothers Holdings, Inc. Washington Mutual, General Motors, Chrysler, Enron Corp. etc. are just a few of the major names that have filed in the past decade alone. Bankruptcy arises 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. When an individual is at this desperate circumstance, instead of feeling depressed and ashamed, he or she should take legal advice on how to save their exempt properties by filing for bankruptcy. Millions of individuals, entities and small businesses are facing the same predicament in America. With the decline in the economic fortunes and recession, more and more entities and individuals are resorting to debt relief to enable them to start afresh. Entities or individuals that seek debt relief under the Bankruptcy Code may file a petition under many different chapters of the Code depending on their individual state of affairs. Liquidation under Chapter 7 is the most common section for filing for debt relief. In a Chapter 7 liquidation case, the debtor has to surrender certain properties over to the bankruptcy trustee so that it may be sold off and the proceeds distributed to the creditors to pay off accumulated debts. Debtors, whether they are individuals or businesses, are often concerned about the nature of the property that they will be allowed to retain and that they will have to give up. The Chapter 7 debtor will usually have to give up non-exempt property and allowed to retain exempt properties. Exemption laws vary from state to state. The best advice on what assets the debtor might have to hand over will be available from a local attorney. The attorney will know which assets you have to turn over for liquidation. Common examples of assets that may be subject to Chapter 7 liquidation include: Tax refunds, bank account funds, stocks and bonds, motor vehicles, real estate, jewelry, antiques and collectibles, cash value of some life insurance policies, proceeds of certain types of law suits, other personal property. Your business could actually benefit from filing for bankruptcy. An automatic stay that is imposed when the party files prohibits the commencement, enforcement or appeal of actions and judgments, judicial or administrative against a debtor for the collection of a claim that arose prior to the filing. This action would protect the property and business of the debtor. A business undergoing temporary financial crunch would benefit in the long run by the debtor filing for bankruptcy. Geneva, IL residents can ask for advice from local lawyers for all their debt related problems. Bankruptcy Geneva, IL - When looking for advice on bankruptcy, Geneva, IL based Petti Murphy & Associates offers legal counsel for you and your business.
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