Chapter 15 Bankruptcy

There are several different kinds of bankruptcies, and Chapter 15 is only one of the many which are available. This is the function of bankruptcy when it comes to different countries. The reason that the United States decided to add this part to the Bankruptcy Code is that a lot of the time, what happens in one country regarding bankruptcy is often tied to either assets or information that can be found in many other countries. When there are many different countries, and therefore multiple jurisdictions involved, things can sometimes get confusing. Chapter 15 can help to straighten these things out in such a way so that everyone knows where the money is and where it should go.

Chapter 15 will basically allow the US government and the bankruptcy courts to be able to get information about a company’s assets or a country’s assets. This is a good option for companies that try to keep some of their assets in another country so that they will be more easily able to file for bankruptcy. What this does is that it makes the proceedings for bankruptcy go on much more smoothly and take up much less time and money than if there was no such thing as Chapter 15 in order to protect the assets of a company in general.

Chapter 15 is able to set up a cooperation between the United States Courts and the foreign courts and representatives so that they can all take care of the interest of the person filing for bankruptcy together without having to deal with all of the red tape that goes along with filing for bankruptcy when several of the assets are located somewhere overseas.

It is always a matter of discretion when it comes to whether or not the US courts will extend the assistance needed to the countries or companies in question. Most of the time, the US courts will have to take into consideration how the different jurisdictions relate to the matter at hand and what kind of action should be taken to get the bankruptcy done with as little trouble and drama as possible.

Don’t forget that this is something that has been set up so that in general the process of gaining a bankruptcy and getting to take care of the assets that are overseas are easier to take care of. Most of the time, this can be used in conjunction with the other filings of bankruptcy, because it is something that can be very useful to many of the individuals or companies that decide to file for bankruptcy.

 


Elliott Dawson is a contributing editor at DebtFinanceArticles.com. This article may be reproduced provided that its complete content, links and author byline are kept intact and unchanged. No additional links permitted. Hyperlinks and/or URLs must remain both human clickable and search engine spiderable.

Is Bankruptcy the Right Thing For You?

Bankruptcy is a financial practice that usually allows you to officially declare that you cannot repay your debts now and do not see how it will ever be possible in the coming future. Declaring Bankruptcy is also usually a very big step. For many people, there are other ways for you to get out of debt, such as debt consolidation or negotiating with your lenders. Nevertheless, if your best option for getting out of debt is bankruptcy, than you should take steps in order to make this financial situation work in the best possible way for you. A financial profession can assist you in doing that. In any case, before you decide to jump into anything, you will need to fully decide if bankruptcy is right for you.

Firstly, it is always very important to learn as much as you can about bankruptcy. For individuals, chapter 7 and chapter 13 are the two types of bankruptcy that can be filed. There are many other options for businesses and entities. You can learn the difference between the two so that you can see how they work. If bankruptcy is right for you, you must be aware of your obligations and all of your lenders’ choices.

Once you have learned all that you can about bankruptcy, you should try to take a moment in order to consider other options. For instance, you will be able to consolidate your debts into one large monthly payment. If you are considering bankruptcy because you just barely miss paying off your bills one time every month or if you feel overwhelmed by credit card debt, this may be a great option for you. You can also try doing nothing and living simply for a number of years, which will work very well if you have no family for whom you are responsible. Another option can be found in negotiating with your lenders. In the end, there are several different options other than bankruptcy, so always try to make sure that your second step is to consider them all.

Next step is to try to check out what the requirements are for eligibility and for declaring bankruptcy. If your debts are too high and your income is too low, you probably will not qualify for chapter 13 bankruptcy. On the other hand, if your income is too high and your debts are too low, you will probably not qualify for chapter 7 bankruptcy. In several cases, you might not qualify for either, and this is a sign that you did not think through your other choices.

Try to consider all of your property and debts if you do qualify. What will happen to your home? Your car? Your retirement plan? Every state has a different specification when it comes to this, so try to make sure that you understand how your property will or will not be taken. Further, it is always important to begin compiling lists of your assets and debts. Try to remember that some debts cannot be wiped out, such as child support payments.

Once you have all your information compiled, you can begin the declaration process. It is always best to work with a lawyer or financial professional in order to complete this task, and remember to always be completely honest. Declaring bankruptcy is not always for everyone, but it can possibly work for some people.

 


Gemma Markby is a contributing editor at DebtFinanceArticles.com. This article may be reproduced provided that its complete content, links and author byline are kept intact and unchanged. No additional links permitted. Hyperlinks and/or URLs must remain both human clickable and search engine spiderable.