What is the U.S. Bankruptcy Code?

The U.S. Bankruptcy Code is a set of federal laws that provide people and businesses with a way to seek relief from their financial obligations if they are unable to pay them. It is designed to give people and businesses a fresh start by allowing them to reorganize their finances and debts and usually involves restructuring their payments and reducing or eliminating some of their debt. In the state of Delaware, the U.S. Bankruptcy Code is handled through the U.S. Bankruptcy Court, which is a federal court dedicated to handling bankruptcy cases. The U.S. Bankruptcy Code is a complex set of laws and is broken down into chapters. Some of the most common types of bankruptcy are Chapter 7, which focuses on liquidation of assets to pay off debts; Chapter 11, which focuses on reorganization of debts; and Chapter 13, which involves developing a payment plan to pay back creditors. Each type of bankruptcy has different qualifications, so it is important to talk to a legal expert to find out which one is right for you.

Related FAQs

What is the Home Affordable Foreclosure Alternatives Program?
What is the Equal Credit Opportunity Act?
What is the Unlawful Internet Gambling Enforcement Act?
What is the Home Owners’ Loan Act?
What is the Bank Holding Company Act?
What is the Community Reinvestment Modernization Act?
What is the difference between a credit union and a bank?
What is the Fair Credit Billing Act?
How does the Patriot Act impact banking law?
What is the difference between a secured loan and an unsecured loan?

What is the U.S. Bankruptcy Code?

Related FAQs

Related Blog Posts