All matters regarding bankruptcies are federal cases. Petitions must be filed with the appropriate court located in the state of the individual or business concerned. For example, an Orem bankruptcy lawyer will be filing petitions in the United States Bankruptcy Court for the District of Utah.
This court is located in Salt Lake City. It is the only court that is authorized to handle bankruptcies in the state of Utah. State courts and federal district courts have no jurisdiction in these cases.
Individuals, couples and businesses can all file their own petitions. Most filings fall under one of the three popular types. Chapter 7 is for liquidation while Chapter 11 is for reorganization and Chapter 13 for debt adjustment.
A Chapter 7 filing will initiate liquidation of the debtors' assets. The proceeds will be distributed to the creditors by a trustee appointed by the court. This ends the process, and the debtor is then free of all the debts that were listed.
A Chapter 11 filing gives corporations a chance for reorganization instead of having to liquidate assets and close the firm. The applicant must offer creditors a plan to pay back debts while keeping the firm operational and take the chance to reorganize finances and operations. Chapter 13 allows individuals with sufficient incomes to adjust their debts and repay it back over a longer period such as 3-5 years.
Regardless of the type, all of these filings need comprehensive records and supporting documentation. This includes a full listing of all assets, income and debt. The names of all creditors and the amounts owed to each one must be specified. If accepted, the petition instantly stays any and all creditor actions to recover debts owed by the petitioner. Any future recollection of said debts will occur only through the court appointed trustee's plan.
This court is located in Salt Lake City. It is the only court that is authorized to handle bankruptcies in the state of Utah. State courts and federal district courts have no jurisdiction in these cases.
Individuals, couples and businesses can all file their own petitions. Most filings fall under one of the three popular types. Chapter 7 is for liquidation while Chapter 11 is for reorganization and Chapter 13 for debt adjustment.
A Chapter 7 filing will initiate liquidation of the debtors' assets. The proceeds will be distributed to the creditors by a trustee appointed by the court. This ends the process, and the debtor is then free of all the debts that were listed.
A Chapter 11 filing gives corporations a chance for reorganization instead of having to liquidate assets and close the firm. The applicant must offer creditors a plan to pay back debts while keeping the firm operational and take the chance to reorganize finances and operations. Chapter 13 allows individuals with sufficient incomes to adjust their debts and repay it back over a longer period such as 3-5 years.
Regardless of the type, all of these filings need comprehensive records and supporting documentation. This includes a full listing of all assets, income and debt. The names of all creditors and the amounts owed to each one must be specified. If accepted, the petition instantly stays any and all creditor actions to recover debts owed by the petitioner. Any future recollection of said debts will occur only through the court appointed trustee's plan.
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