Bankruptcy is a set of legally-defined ways for individuals or businesses to settle debts without full payment, by following rules that govern their assets and financial actions for a period of time. There are two broad types, liquidation and reorganization. Under liquidation, the party in debt agrees that their eligible properties and assets can be taken and sold to pay back debt. Some types of property are exempted. Under reorganization, the party in debt retains their property, but commits to repay some portion of the debt, typically over time. While it provides relief from debt, bankruptcy has serious and long-term effects, affecting credit ratings, the cost of future borrowing, eligibility for financing and purchases, and more. Bankruptcy decisions in the US are Federal. The US Constitution authorizes Congress to establish ‘uniform Laws on the subject of Bankruptcies throughout the United States’. States are allowed to define exempt and non-exempt properties, but they do not make bankruptcy judgements.
 

TitleTap

TitleTap

TitleTap provides turn-key websites and marketing tools like Video, Social Media Management, and Email Marketing for Title Agents and Real Estate Attorneys. Get more great marketing tips like this specifically relevant to Real Estate, Title Insurance, Mortgage Lending, and Law by subscribing or visiting our blog above.
TitleTap

Related Post

Real Estate Closings Are Like Baseball A Fenway story... A few years back my family and I went to Maine for vacation. The day we landed in Boston the Red Sox were playing the Rays in the nostalgic Fenway Park. We decided to go in order to kick off vacation quickly, and to give our kids the REAL baseball experience. The next day my...
Guest Webinar with PropLogix – How to Market Your Company Like Beer! (Upda... Did you ever wonder what Beer has to do with running your Title Company or Law Firm? More than you might think actually. Join us on Wednesday, February 20th at 10am EST as we co-hosts a webinar with PropLogix on how to market your law firm or title agency like one of the most iconic beer brand...
Common Types of Power of Attorney http://bucket.wistia.com/medias/favgkkvfnx?embedType=async&videoFoam=true&videoWidth=640 Imagine a board game player telling a friend 'roll for me, but don't sell anything'. Would the friend continue to roll when the player returned? Probably not. In game terms, they were granting a limite...
Don't Go At It Alone. Download The Free PDF!"10 Uncommon Questions to Ask Before Hiring a Web Designer"

All websites are not created equal! Download a free PDF with all of the questions you need answered BEFORE hiring a web designer.

Download Now