Types of Bankruptcy

Basically, bankruptcy is quite complicated terms. There are lots of chapters and segments of bankruptcy that varies from state to state. But, there are certain steps which are almost same in all states and follow the same terminology and basic processes. Here, you will get to know the basic similarities among bankruptcy in several states. Law firms like BLC law center are there where you can get the best bankruptcy lawyers.

The Parties in Bankruptcy

There are two main parties who are involved in bankruptcy case filings. They are-

 

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  • Creditors
  • Debtors

The debtor is the person who owes money to the creditor. Usually, a debtor can be the person or the individual. The creditor can be any organization or company which claims that the debtor owes some properties, money or service from the creditor. Usually, maximum bankruptcy cases involve more than one creditor. When it comes to debtors, there are two different types of debts are involved-

  • Secured
  • Unsecured

In thecase of secured debts, creditors are legally allowed to take over your property if you fail to make the appropriate payments within theproper deadline. For example, if you keep any of your property as mortgage, that is secured debt. If you take aloan from thebank to buy your house, your bank gets alien on it. If you stop paying the mortgage payment for any reason, the bank can take possession of your house. In thecase of businesses, secured debt becomes very complicated. To get help if you are trapped in a bankruptcy case, you should hire a bankruptcy lawyer. With proper skill and experience, h/she will help you to get over the situation.

No matter how different the types of bankruptcy in different states, the basic similarities are there. To get more information about it, you can hit links like www.blclawcenter.com.