Bankruptcies are matters that fall under the jurisdiction of the federal courts. Any petition must therefore be filed in the appropriate federal court for that person or business. So Orem bankruptcy lawyer filings are sent to the U. S. Bankruptcy Court for the District of Utah.
The courthouse for this court is based in Salt Lake City. Any and all bankruptcies originating in the state of Utah are handled by this court. Other state courts and even the federal district courts have no say over these matters.
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.
Chapter 7 allows for liquidation proceedings. This means that the debtor's non-exempt assets will be liquidated and the proceeds distributed among creditors by the trustee. Once this process is completed, the debtor has no further obligation to pay back any more of the listed debt.
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.
Complete financial information and records are required to be submitted for all these filings. This includes the applicant's income, assets and debts. All the names of the creditors and the exact amounts owed to each of them must be listed. Once the judge accepts the filing, a stay is issued to stop all listed creditors from taking any further recollection measures. The only way the debt will now be paid is through a plan approved by a court-appointed trustee.
The courthouse for this court is based in Salt Lake City. Any and all bankruptcies originating in the state of Utah are handled by this court. Other state courts and even the federal district courts have no say over these matters.
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.
Chapter 7 allows for liquidation proceedings. This means that the debtor's non-exempt assets will be liquidated and the proceeds distributed among creditors by the trustee. Once this process is completed, the debtor has no further obligation to pay back any more of the listed debt.
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.
Complete financial information and records are required to be submitted for all these filings. This includes the applicant's income, assets and debts. All the names of the creditors and the exact amounts owed to each of them must be listed. Once the judge accepts the filing, a stay is issued to stop all listed creditors from taking any further recollection measures. The only way the debt will now be paid is through a plan approved by a court-appointed trustee.
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