What is bankruptcy?

Bankruptcy is a legal process that allows a person or organization with more debt than they can pay to have some or all of their debts discharged. It provides them with a fresh start and eliminates their financial obligations. Bankruptcy law in Delaware is regulated by the United States Bankruptcy Code (U.S.C. Title 11) and is governed by the Delaware Bankruptcy Court. In Delaware, consumers can file for either Chapter 7 or Chapter 13 bankruptcy. Chapter 7 bankruptcy is known as “liquidation” bankruptcy because it involves the liquidation of your non-exempt assets. In other words, you must give up any property that is not protected by state or federal law in order to pay back your creditors. In Delaware, you can also opt for Chapter 13 bankruptcy, which is also known as a “wage earner plan” or “reorganization plan”. This type of bankruptcy allows you to keep all of your possessions while you make payments to your creditors over a period of time. If you are a resident of Delaware, it is important to understand the laws surrounding bankruptcy so that you can make an informed decision about the best path for getting out of debt. Bankruptcy can be a good way to get back on your feet financially and make a fresh start, but it is important to work with an experienced professional to make sure that you are making the right decision for your situation.

Related FAQs

What is creditor reaffirmation?
Does bankruptcy eliminate liens?
How often can I receive a bankruptcy discharge?
How do I know if I qualify for a repayment plan?
What type of information will I need to provide to my attorney before filing for bankruptcy?
What is the bankruptcy automatic stay?
Do I have to pay taxes on any discharged debt?
Is bankruptcy the best option for me?
Is bankruptcy a public record?
Are there any debts that cannot be discharged in bankruptcy?

What is bankruptcy?

Related FAQs

Related Blog Posts