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BANKRUPCY
-Provides a way for debtors to escape financial burdens -Creates a feild for creditors to compete for assets
-Bankrupcy is initiated by either voluntarily of involuntarily filing a petition. -Next a trustee is selected -the duties of the trustee is to locate protect and liquidate the assets of the debtor and then pay the claims against the debtor's estate
certain debts can not be liquidated such as- -certain taxes -alimont/child support -claims for property obtained by fraud ect. -some student loans
Also certain property is exempt from liquidation -real property up to $18,450 -life insurance payments -life insurance policy with loan value -alimony and child support -pensions and retirement benefits -$475 per item of house hold items -health aids -jewelry to $1225 -motor vehical to $2950 -personal injury compensation to $18450 -wrongful death payments -crime victim compensation -public assistance -social security and unemployment compensation -veterans benefits -tools of the debtors trade, books, and equipment to $1850
Types of Bankrupcy -liquidation -reorganization -debt relief for family farms -extended time payment plan
