Bankruptcy Attorneys Can Help You File

There are several different ways in which people are able to file for bankruptcy. Therefore, when it comes to this it is a good idea to seek information on bankruptcy law from companies such as Vienna law group. When it comes to bankruptcy assets tend to fall into four basic categories, which are liened assets, leased assets, exempt assets and also immaterial assets. The trustee will only be interested in liened assets if there is a lot of equity available for the creditors. An example of liened assets would be if the debtor owns a home that is worth about three hundred thousand American dollars but still has a mortgage of two hundred and ninety thousand American dollars on the property. Leased assets are the assets that the debtor is leasing, for example a car or machinery if they own a business. The exempt assets will be the items that the Vienna law protects from creditors. The law in Vienna states that if someone has to file for bankruptcy law they would rather see that person start over again with something rather than taking away everything that they have, therefore some things are exempt. The immaterial assets are assets that do not actually belong to the debtor and therefore they are exempt. If the trustees for the bankruptcy find that all of the assets are leased, liened, exempt or immaterial then the debtor will have to file a one-page document with the clerk within the bankruptcy court. This one page document is legally known as a report of no assets.

Bankruptcy law is made up of six different chapters that debtors are able to file. Some of these chapters tend to be very specialized. The most common chapters that are used are chapter 11 and chapter 13.Chapter 11 of the bankruptcy law relates more to the bankruptcy of a business or corporate organization. The chapter 11 bankruptcy is the type that is mentioned the most within the news. This style of bankruptcy tends to be high profile cases. Over recent years there have been a number of companies that have had to file for a chapter 11bankruptcy and these include Texaco, United Airlines and also Macy's to name a few. All of the companies that file for bankruptcy have no other option than to consider foreclosures.

Another commonly used bankruptcy law is Chapter 13, which covers bankruptcy criteria and the tests that can be used by the bankruptcy court on foreclosures. The Vienna law group can help anyone that is considering bankruptcy in order to determine if it is the best choice for them. In order to file under chapter 13 the debtor must be able to meet all of the criteria that are stated in this chapter. There are five different criteria that must be met under Chapter 13. The first criterion that has to be met is that the debtor must be an individual, meaning that they cannot be part of a business. The second criterion that must be met is that the debtor must be generating an income, which can be either income from employment or government assistance, but other ways are also acceptable. The third criterion that has to be met is that the debtor must be bringing in a higher monthly amount than they are spending on expenses so that there is something available for the creditors. The amount of secured obligations that the debtor has must be less than nine hundred and twenty two thousand nine hundred and seventy five American dollars. The fifth part of the criteria that has to be met is that the liquidated unsecured obligations that the debtor has must be less than three hundred and seven thousand six hundred and seventy five American dollars.

Once the law company such as Vienna law group is confident that someone meets all five of the qualifying criteria, it also has to be confirmed by the court prior to any foreclosures. The plan from the debtor must be proposed in good faith and the debtor must satisfy the court that they have the creditor's best interests in hand. The plan that the debtor offers must be feasible as there is no point them offering to pay money that they know they will not be able to pay. It is very important that the debtors plan is devoted to the creditor and that it takes into account the disposable net income. It is also important for the debtor to draw up a budget and to stick to it, as this will ensure that they are able to meet the plan that has been drawn up.