United States insolvency legislation performs a valuable balancing act on behalf of the creditor and debtor during periods of financial downturn. Our Najla Law Firm recognizes the intricacies of such laws and how they affect the creditor and debtor alike. You’re a creditor hoping to get paid, or a debtor hoping to start anew; whatever the circumstances, we are familiar with such laws and their application to your case.
For creditors, insolvency statutes offer a structured way to recover fairly. For Chapter 7 bankruptcy, a debtor’s non-exempt property is sold and proceeds distributed to creditors. Secured creditors, like mortgage or automobile loan creditors, generally take precedence over unsecured creditors. Chapter 11 bankruptcy, commonly employed by business concerns, permits debtors to reorganize and continue in operation, something that may be favorable to creditors by maintaining the debtor’s prospect for repayment over time.
For debtors, the bankruptcy laws provide a safety net. Chapter 7 gives a fresh start by wiping out the majority of unsecured debts, and Chapter 13 enables individuals to develop a three- to five-year repayment plan. The provisions enable debtors to regain economic stability and shield vital assets such as homes and cars from seizure by allowing exemptions.
At Najla Law Firm, we place a high value on strategic planning for both debtors and creditors. Creditors need to move quickly to file claims and safeguard their interests, while debtors need to investigate all avenues to reduce losses and maximize recovery.
From a search engine optimization standpoint, knowledge of the insolvency laws is important to companies and individuals facing financial distress. Phrases such as “U.S. insolvency laws,” “creditor rights in bankruptcy,” and “debtor protection under Chapter 7” can cause this content to appear on Google’s front page, generating traffic for Najla Law Firm‘s services.
Finally, U.S. insolvency law is intended to reconcile the rights of debtors and creditors. If you need help in dealing with financial distress or recovering debts, the Najla Law Firm is where you can sit down with you so that you will be advised and secured every step of the way.
Talk to Najla Law Firm today and learn your rights and possible alternatives under the U.S. insolvency laws.
