In the United States the federal government has complete jurisdiction over bankruptcy law. A bankruptcy attorney in Salt Lake City Utah is a legal professional that is educated and trained in all aspects of the law which consists mostly of statutes and legislative bills. Some laws which have been made by the judiciary do exist but in most cases these are interpretations of federal statutes that deal with the regulation of bankruptcy.
In the US there are a number of Chapters for declaring bankruptcy but there are three which are most often used, the laws that pertain to these different ways to declare bankruptcy differ. Depending on the status of the debtor Chapters 7, 11 and 13 are the most often used. In the greatest majority of cases a business will declare Chapter 11 while individuals; once again, depending on their circumstances will opt for either Chapter 7 or 13.
Bankruptcy laws come into play when a debtor wishes to have their debts forgiven. Wanting to declare bankruptcy and being allowed to do it under federal law are very much two different things. A person who wants to declare bankruptcy must prove decisively that they have amassed debts which cannot be paid. The petition for bankruptcy is usually left to the bankruptcy attorney in Salt Lake City Utah that has been engaged to represent the petitioner.
All the debts that will be included in the petition must be listed in the documents provided to the court; the debtor must also provide details of any income as well as assets. Any and all of the creditors are free to make claims with the court against the assets of the debtor as well as dispute the bankruptcy.
In the majority of cases the petitioner is instructed by the court that they must dispose of their assets, the proceeds of which will be used to partially pay the accumulated debt. It is the responsibility of the court to make the distribution of money, the order in which creditors are paid is laid down in the bankruptcy laws.
The bankruptcy attorney in Salt Lake City Utah will advise the client which Chapter to file as federal law has certain provisions that must be met. Petitioners who have income in excess of what constitutes poverty are usually forced to declare Chapter 13 rather than Chapter 7. In Chapter 13 not all the accumulated debts are forgiven, the petitioner and the attorney will file a repayment plan with the court which schedules what portion of the debt must be paid and in what time frame.
The laws applicable to bankruptcy are quite complex, it is highly recommended that anyone considering bankruptcy do so with a bankruptcy attorney in Salt Lake City Utah. You are invited to contact the Law Office of Andrew B. Clawson, PC.
