In the United States law, bankruptcies are not only possible for business enterprises and companies, but also for private individuals. Americans are commonly regarded as particularly vulnerable individuals. One of the basic conditions for this could be the possibility of each consumer’s desire to spend money, which makes it possible to go bankrupt and, thus, get a fresh start.
Several forms of bankruptcy
In 2002, there were about 1.5 million businesses that underwent bankruptcy proceedings in the USA. American law recognizes several forms of bankruptcy:
- Liquidation, which is the dissolution of a debtor’s assets
- The reorganization of the debtor’s assets for the purpose of rehabilitation
Bankruptcy attorneys are in the business of fighting for their client’s rights. The US Bankruptcy Code contains, in particular, has the following provisions:
Complete liquidation of the debtor’s assets to satisfy creditors as best as possible from the bankruptcy. The liquidation will be …