Bankruptcy Law – Understanding the Basics

Bankruptcy Law is the practice of declaring a person bankrupt. This practice is an extreme step and should only be taken as a last resort. Bankruptcy is a legal procedure through which a debtor or any other entities can request legal relief from all or part of their debts. In some jurisdictions, bankruptcy is imposed through a court judgment and is sometimes initiated by the debtor himself. The debtor can either choose to declare himself bankrupt or apply for a bankruptcy court petition.

Bankruptcy Law is divided into two branches – the civil branch and the criminal branch. The civil branch deals with the fundamental issues that arise when someone has lost his/her job or when the debtor has suffered an accident or death. The court will review the case and then decide whether or not the debtor has any chance to get out of debt. It will also determine whether or not bankruptcy proceedings are needed.

Image by Gerd Altmann from Pixabay

The criminal branch of bankruptcy Law deals with more severe offenses such as fraud, embezzlement, murder, and theft. This branch will also recommend the most appropriate means of filing bankruptcy. In cases involving serious offenses, the court will decide if a person can get out of debt by declaring him/her bankrupt. This branch will also discuss with the debtor whether or not he/she will agree to pay back the debt after bankruptcy. In many cases, the court will ask the person involved to go to jail or suffer some other punishment.

If a person does not wish to file bankruptcy, he or she can hire legal counsel. The lawyer can help the person decide whether filing for bankruptcy is the right decision. He can also guide the person on the way to become debt-free. He can also help in creating a budget to enable the person to have financial freedom after bankruptcy.

Bankruptcy Law gives you some leeway. You are allowed to continue paying your debts while your case is being finalized. However, there are many stipulations and limitations in terms of debt repayment. For instance, if you do not have a business, you cannot declare yourself bankrupt. If you are a married person and the debt amount is more than the monthly income, you cannot file for bankruptcy. Even if you are on the verge of getting divorced, you cannot declare yourself bankrupt.

Filing for bankruptcy is not an easy decision. It is advisable to take expert advice and advice before you file for bankruptcy. You should also consult a bankruptcy lawyer to ensure you are not making a mistake. While considering bankruptcy Law, you must make sure that you are not doing it for your interest, but because you are forced to do so.

Leona Rankin
Founder Leona has worked for years as a Corporate Security Manager until she decided to form the company. She deemed all information regarding security should be regarded as a necessity, especially nowadays where threat may be imminent everywhere, whether in the physical, or the digital world.