Bankruptcy

The Goodman Law Firm can help businesses and individuals file for bankruptcy in the state of Maine. Here is a quick overview of the types of bankruptcy as defined by the United States Bankruptcy Code.

Chapter 7 Bankruptcy

Chapter 7 of the U.S. Bankruptcy Code is a set of laws that define liquidation procedures. Chapter 7 is sometimes referred to as “straight bankruptcy” or simply “liquidation”. A business in financial crisis can file for bankruptcy under Chapter 7, and so can individuals. Liquidation, in short, is the redistribution of property and assets.

Chapter 11 Bankruptcy

Chapter 11 of the U.S. Bankruptcy Code is a set of laws that describe the process of reorganization. It is used most frequently by corporations, but Chapter 11 bankruptcy is an option for any type of business or individual who can not pay off their debts.

Chapter 11 bankruptcy can be a complex process. It may take months, and sometimes years to complete, depending on the details of the case. The first step in the process, after a business stops operations, is usually to determine a trustee. In many cases, the trustee is a debtor of the business. The trustee will sell assets and use the proceeds to pay off all debts. The entire process takes place in a bankruptcy court, overseen by an impartial judge.

Chapter 13 Bankruptcy

Chapter 13 of the U.S. Bankruptcy Code is, in short, a form of debt consolidation for individuals who are unable to pay off their debts. The process takes place in bankruptcy court with a judge overseeing a plan for debt rehabilitation. In some cases, an individual can be forced into Chapter 13 by a creditor.

Chapter 12 Bankruptcy

Chapter 12 of the U.S. Bankruptcy is like Chapter 13, but it is only available to independent farmers and fishermen.

 

The Goodman Law Firm is glad to provide an attorney to represent you in a Maine Bankruptcy court. For more information, please contact the Goodman Law Firm. We are happy to answer your bankruptcy questions and provide a free consolation.