What Is Bankruptcy? Bankruptcy is a legal process that allows individuals or businesses to obtain relief from their debts when they are unable to pay them. In the United States, bankruptcy is governed by federal law, specifically the Bankruptcy Code. There are several different types of bankruptcy that individuals and businesses can file, each with its own set of rules and procedures. One of the most common types of bankruptcy for individuals is Chapter 7 bankruptcy, also known as "liquidation" bankruptcy. Under Chapter 7, the...
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What is Bankruptcy? Bankruptcy is a legal process that allows an individual or business that is unable to pay its debts to either restructure or eliminate those debts. The bankruptcy process is governed by federal law, and is administered by the courts through a bankruptcy trustee. Types of Bankruptcy There are several different types of bankruptcy, including Chapter 7, Chapter 11, and Chapter 13. The type of bankruptcy that an individual or business may be eligible for depends on various factors, such as the amount...
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Bankruptcy Exemptions Bankruptcy exemptions are legal provisions that allow a person to keep certain assets when they file for bankruptcy. These exemptions vary from state to state and can also be affected by federal law. In the United States, bankruptcy is a legal process that allows individuals or businesses to eliminate or repay their debts. There are two main types of bankruptcy: Chapter 7 bankruptcy, which involves the liquidation of a person's assets to pay off their debts, and Chapter 13 bankruptcy, which involves the...
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Wage garnishment is the most common type of garnishment. In Arizona, the wage garnishment process usually starts when a creditor files a writ of garnishment of earnings, therefore, initiating a civil lawsuit against a debtor, who has defaulted on payments. If the judge rules for the creditor, the Court grants a money judgment in favor of the creditor and against the person owing the money. The judge issues a court order to the creditor. If the debtor does not pay, then the creditor can use the money judgment to file for a wage garnishment. The creditor serves the wage garnishment documentation on the debtor’s employer, and it requires the employer to withhold (garnish) a specified amount from the debtor’s paycheck each pay period. If your employer has been served with this court order, they cannot refuse to garnish your wages without severe repercussions. The court order requires your employer to send the funds to the person or organization that you owe money until the debt is paid off unless other payment arrangements are made with the Court or creditor.
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Bankruptcy, a legal process, provides individuals, couples, and businesses with a fresh financial start by temporarily or permanently preventing creditors from collecting on certain types of debts. It helps people who can no longer pay bills. When the legal procedure for bankruptcy is complete, it provides a discharge, a court order, that confirms to creditors that individuals, couples, or businesses, who are granted the discharge, do not have to repay certain types of debts. When the discharge is permanent for the full amount of debt owed a creditor, it disallows that creditor from trying to collect on that debt.
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Are you struggling to pay business debts? Are you feeling the weight and stress of what feels like an endless amount of debt crushing you? Is your business failing to produce enough income to cover expenses? Could your business really benefit from being reorganized? If you are a business owner, filing bankruptcy probably is one of the last things you want to consider. Yet, according to the Small Business Administration (SBA) more than 50% of businesses fail within the first ten years. Unfortunately, filing business bankruptcy is something many business owners need to consider. Filing bankruptcy does not mean the death of your business. Actually, filing either Chapter 11 or Chapter 13 bankruptcy allows you to save your business by reorganizing your debt. Filing bankruptcy can bring much needed relief from financial stress and provide a way for you to give your business a fresh, financial start.
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An Overview of Wage Garnishment in Arizona Wage garnishment is the most common type of garnishment. In Arizona, the wage garnishment process usually starts when a creditor files a writ of garnishment of earnings, therefore, initiating a civil lawsuit against a debtor, who has defaulted on payments. If the judge rules for the creditor, the Court grants a money judgment in favor of the creditor and against the person owing the money. The judge issues a court order to the creditor. If the debtor does...
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More and more retirees are filing for bankruptcy due to several reasons. Disappearing benefits, rising medical costs, planning inadequately, increasing caretaker expenses, and declining income are a few of the major causes. More seniors are not only filing for bankruptcy, but they also are representing a larger percentage of filers. In 1991, only 2% of bankruptcy filers were 65 years or older. Now, more than 12% of bankruptcy filers are seniors, up 10% in less than thirty years.
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Filing bankruptcy is a huge decision. And, there are a lot of smaller, yet extremely important choices to be made regarding the process. Should you file bankruptcy? What type of bankruptcy should you file? When should you file bankruptcy?
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Understanding the bankruptcy process can be a daunting undertaking. However, if you break it down into manageable sections, it can be easier to understand. Keep reading the following sections to learn more about the bankruptcy process and how it applies to your individual situation: Bankruptcy Explained, Bankruptcy Types, Why Should You File Bankruptcy, When Should You File Bankruptcy, and Bankruptcy Costs.
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