What is Bankruptcy?

Bankruptcy is a legal proceeding to help people who are having difficulty with their finances and can not pay their bills. A person files paperwork (a bankruptcy petition) with the United States Bankruptcy Court asking that either certain debts are 1) cancelled (discharged) or 2) paid back in another way (reorganized).

Filing bankruptcy allows a person to get most if not all bills owed discharged, or eliminated, so these debts do not have to be paid. Most people can keep most if not all of their property. A married person may file by alone or jointly with a spouse.

The stigma attached to filing a bankruptcy has diminished because of the "fresh start" individuals obtain after going through unforseen financial trouble. Most people file bankruptcy because of a loss of employment, illness, divorce, failure of a business, death of a loved one, or living on a fixed income.

Once a person files bankruptcy creditors cannot try to collect debts or sue a debtor during the bankruptcy. Only after asking the bankruptcy court's permission can certain creditors take back collateral. Read more about the automatic stay.

There are numerous different types of bankruptcy. Congress enacted six different types of bankruptcy in the United States Code (Title 11).

Chapter 7: Liquidation
Chapter 9: Municipality
Chapter 11: Reorganization
Chapter 12: Farmers and Fisherman
Chapter 13: Individual Reorganization
Chapter 15: International cases

Individuals usually file a chapter 7 bankruptcy or a chapter 13 bankruptcy. At the Law Office of Scott Rice, we specialize on individuals who file chapter 7 and Chapter 13.

In 2008, there were over 1.1 million bankruptcy case filed in the United States. Sixty seven (67%) percent of those cases were chapter 7s. During that same period, 12,991 people in the Columbus bankruptcy office of the Southern District of Ohio filed bankruptcy. Eight thousand eight hundred sixty seven (8867) people filed for Chapter 7 bankruptcy in the Columbus office and four thousand eighty five (4,085) people filed for Chapter 13.

Columbus bankruptcy attorney Scott Rice is a debt relief agency.

Columbus bankruptcy attorney Scott Rice helps people file for relief under the Bankruptcy code.