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

Are there any special provisions for filing for bankruptcy as a business?
How do I know if I qualify for a Chapter 13 bankruptcy?
Are there any assets that I will be required to sell when filing for bankruptcy?
What will happen to my creditors if I file for bankruptcy?
How do I change my name after filing for bankruptcy?
Will bankruptcy discharge the entire amount of debt owed?
Will I lose my property if I file for bankruptcy?
What is an adversary proceeding?
Are there any sites where I can get reliable information about bankruptcy law?
How do I know if I qualify for a repayment plan?

What is bankruptcy?

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