There are several Chapters, such as Chapter 7, 9, 11, 12, 13 of the BANKRUPTCY Code under federal laws governing BANKRUPTCY law New York. Various chapters under BANKRUPTCY law covers a wide range of issues and therefore a guide on how to deal with, and decide cases that fall under each chapter effectively.
Chapter 7 will be charged for the debtor who has no assets to repay debt. Chapter 9 relating to cases of Government Municipal Council. For owners or shareholders of the company that is Chapter 11. Chapter 12 deals with fishermen and farmers. For salaried individuals or families, self-employed and wage is chapter 13.
The Rules and Regulations Pertaining to New York Bankruptcy Law
As required under Chapter 7 BANKRUPTCY laws New York, individual income under such cases should be less than the average income. Under this chapter, cases handled almost made entirely excluded from debt, but some things like student loans, alimony, child support, debt payable fraud obtained outside. The rules are different under Chapter 13 where recovery is made from the person who filed for bankruptcy after updating the law responsibility of debt. This is usually done over a longer period of time and Most probably at rates that are less interesting, and also by reducing monthly payments. But if a person is of the opinion that by filing for bankruptcy will make them immune from payment of their debts is wrong, because under the provisions There is no option to get rid of liabilities without paying back the debts.
Federal laws strict has been implemented so that can check a few random filed for bankruptcy. Nowadays to file cases under the BANKRUPTCY laws New York, someone is really convinced the organization that he or she is really without any asset that can be used to repay outstanding debt. Therefore there is another option but to file bankruptcy, to stop paying interest on the debt. Proof of documentation verifying individual claims about who really without any asset that is required to file a bankruptcy petition.
The court handling BANKRUPTCY cases are generally decided that cases of genuine and truly deserve, and assign them properly under various chapters. There is also a business BANKRUPTCY cases in which the business failed due to various reasons and therefore have filed bankruptcy, declare that the company is not in a position to pay the debt because it has run out of all the resource. At the same time the company can also declare that although bankrupt, they intend to continue their business activities. Chapter 11 deals with such cases where the applicant is the owner or shareholder of the company.
BANKRUPTCY law New York prefer that cases filed under Chapter 13, and not under Chapter 7, the reason is that under Chapter 13 it is still possible to recover debts as much as possible. This is usually done by spreading recover within the time longer than time, by realizing the minimum amount payable upon loan liability updates. But the cases that really pure where the individual is not paying interest on the debt, for example, people with some chronic diseases, unemployed, people who have a physical disability or illness involves heavy expenditure, filed under Chapter 7. This is a way to prevent fraud and assist people who really destroyed to get back on their feet, to build self-esteem in society once again. In this way, both the State and its people is maintained Safe and is located on the route to economic revival.
The author of this article, Chiranjit Roy is a practicing lawyer with experience in handling bankruptcy cases that fall under different categories. Thus ten years experience in this field, he has extensive knowledge about the complexities of law BANKRUPTCY law New York.
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