30 Jan Onlilne Bankruptcy Attorney Degree | Abraham Lincoln University
When considering a career in the law, there are many options available. Attorneys practice is a wide array of sectors along the spectrum. Focusing on a specific practice area is one way to begin building a successful law career.
One area of the law where attorneys can focus in the United States is bankruptcy law. Bankruptcy law allows individuals and businesses to wipe out debt by liquidating assets and distributing them among creditors, among other types of resolution that may be approved by courts. Bankruptcy law attorneys help people get a fresh start when the crushing weight of debt is too much.
There are two types of bankruptcy:
- Voluntary bankruptcy: this is bankruptcy initiated by the debtor.
- Involuntary bankruptcy: this is bankruptcy initiated by the creditor.
Bankruptcy is regulated by Title 11 of the United States Code. There are two basic types of bankruptcy proceedings, with Chapter 7 being the only chapter under the first, involving liquidation, and four chapters, 9, 11, 12 and 13, under the second, where the court approves a plan of reorganization and repayment.
- Chapter 7: The only form of bankruptcy involving liquidation is this type, often referred to as straight bankruptcy. In this form, the debtor turns over all non-exempt assets to a bankruptcy trustee, who converts them to cash to be disbursed to creditors. Once this is done, the debtor is discharged of debt.
- Chapter 9: Adjustment of Debts for a Municipality (similar to Chapter 11, but only available for municipalities in too much debt).
- Chapter 11: The most commonly referred to form of bankruptcy is Reorganization. Businesses are allowed to continue operations while repaying creditors based upon a court-approved plan.
- Chapter 12: Provides debt relief to family farmers, in which a farmer repays debts over a period of three to five years.
- Chapter 13: The most common individual form of bankruptcy is this form, which is available to debtors with a regular annual income. It allows debtors to keep assets like houses, unlike in Chapter 7. Like Chapter 12, this allows debtors to repay based on a court-approved plan over three to five years.
Bankruptcy lawyers should be knowledgeable in all chapters of the United States Bankruptcy Code. Some bankruptcy attorneys focus specifically on one area—for example, there are bankruptcy lawyers that strictly focus on bankruptcy for family farmers—but many are able to handle both business and individual bankruptcies.
In times of economic stress, there is a definite need for bankruptcy attorneys.