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Creditors file Chapter 7 bankruptcy petition against firm

Filing for bankruptcy is an option that people struggling to make ends meet can avail to confront overwhelming debt and get control over their finances. Usually, Arizona residents will realize that they are facing financial difficulty and finances are running out of control. To regain that control without losing possession of everything they own, they can file for Chapter 7 bankruptcy.

After Chapter 7 bankruptcy is filed for, the court usually appoints a trustee to sell some of the debtor's assets to pay off their debt. However, the residential home, some furniture and jewelry and even a car, up to a certain value, can be excluded from the sale.

Companies can also file for Chapter 7 bankruptcy. When a company is facing financial problems and does not file for bankruptcy itself, involuntary bankruptcy can be filed on their behalf. This is the case that happened with a law firm that specialized in bankruptcy. The law firm shut down suddenly, apparently leaving some its clients in the dark. Its creditors filed for Chapter 7 bankruptcy over their protests and the judge agreed that it was best that a court oversee the firm's winding down for the benefit of its previous clients. The court appointed a trustee to oversee the process.

This does not always have to be the case - Arizona residents on top of their financial situation should be aware of the options available to them and be ready to pursue the best avenue before others are forced to take the necessary steps for them. An experienced and reliable legal professional may be able to assist and guide debtors on their journey to financial control and debt relief.

Source: Wall Street Journal, "Judge wants Chapter 7 for Jacoby & Meyers Bankruptcy," Sara Randazzo, May 28, 2014