Hess Kennedy Company - Hess Kennedy Law Firm explains Bankruptcy is defined as a legal finding that declares the inability or impairment of ability of a debtor whether an individual or a business entity, to pay its creditors. An insolvent individual debtor, that is a debtor with more liabilities than assets, can use the personal bankruptcy process to legally avoid paying almost all of his or her personal liabilities either temporarily or permanently.

Bankruptcy law in United States which is codified in Title 11 of United States Codes as Bankruptcy Code aims to give an honest debtor a "fresh start" in life unburdened by most of his former debts. An individual debtor can seek relief by filing petitions according to the chapters in the code that deal with personal bankruptcy. For individuals, the two most relevant chapters in the code are Chapter 7 and Chapter 13. If you have any questions regarding this please contact Hess Kennedy Company - Hess Kennedy Law Firm.

Chapter 7 gives a discharge to the debtor by allowing a court appointed trustee to liquidate the non exempt assets of debtor and distribute the proceeds among the creditors. Chapter 13 allows the debtors to payoff whole or part of their debts through a trustee according to a court approved repayment plan usually lasting from three to five years.  (read more)