The Basics of Bankruptcy Law
Everyone has definitely heard of the term bankruptcy. However, its implications and the processes involved are not very clear for all. Although bankruptcy is a commonly mentioned term, it is not as simple as it seems.
How should bankruptcy be defined? In simple terms, it is a legal process that allows businesses or individuals who are stuck in financial crisis to settle their debts under a bankruptcy court’s protection. Thus, it is considered by most businessmen as a good option should they encounter major difficulties with their businesses.
The United States Bankruptcy Courts, which are under the District Courts, supervise and litigate all bankruptcy proceedings. The establishment of The United States Trustees was spearheaded by the Congress to take charge of supervisory and other administrative responsibilities that go with any bankruptcy proceeding.
These are the two types of bankruptcy that may be filed: