What is bankruptcy?

Bankruptcy is a legal declaration by a debtor stating that he or she owes more money than can be paid off in the expected timeframe. Typically, bankruptcy procedures involve the process of either restructuring debt or liquidating the debtor’s assets in order to pay off what is owed. Chapter 7 bankruptcy allows individuals to liquidate some of their property, while Chapter 13 bankruptcy provides for the reorganization of one’s existing debts.

Bankruptcy may be voluntary, in which the debtor files for the process him or herself, or it can be involuntary, in which creditors petition against the debtor to recover what is owed them.

To speak with a qualified Austin bankruptcy lawyer, contact the offices of Slater, Kennon & Pugh Ltd.LLP, at 512-338-1100.

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