Bankruptcy in Nebraska is a legal process through which some of the debts of an individual or a business are absolved (excused). You should not view bankruptcy as an opportunity to eliminate your debts just because you don't feel like paying them - it can be a long and difficult procedure. Bankruptcy is designed to be a last resort to prevent complete financial ruin, while allowing creditors to collect at least some of their debts in an orderly fashion. Filing for bankruptcy can have major negative effects on one's credit score, which will make it more difficult to get loans in the future.
Accordingly, if you are considering bankruptcy as an option, you need to thoroughly examine the costs and benefits. A good Nebraska bankruptcy lawyer can advise you as to the pros and cons of bankruptcy, and give his or her expert opinion about whether or not bankruptcy is a good option, based on the facts of your individual case.
Types of Bankruptcy in Nebraska
Bankruptcy is governed by federal law, so the procedures in filing for bankruptcy in Nebraska will be the same as everywhere else in the United States. There are 2 basic forms of bankruptcy that consumers typically use: Chapter 7, and Chapter 13, owing their names to where they are found in the U.S. Bankruptcy Code. Additionally, there is a form of bankruptcy typically used by businesses called Chapter 11. Chapter 11 is available to individuals, but it is rarely the best option for them.
Chapter 7 bankruptcy in Nebraska is sometimes called "liquidation" because it involves the forced sale of some (though certainly not all) of the debtor's assets. The bankruptcy court will appoint a trustee to oversee the appraisal and sale of some of the debtor's property, and the proceeds from the sale will go to the creditors, in their order of priority. Certain forms of property are exempt, and do not need to be sold, including houses and insurance policies. Once the property is sold, and the proceeds given to the creditors, the rest of the debt is excused. Chapter 13 bankruptcy typically reorganizes, rather than discharges, one's debts. Essentially, the court will come up with some type of repayment plan, independent of the terms of the agreements that created the debt in the first place (superseding any acceleration clauses). This is meant to give the debtor some breathing room, allowing them to repay their debts over time, without facing financial ruin in the process.
Usually, it is businesses as opposed to individuals that avail themselves of Chapter 11 bankruptcy protection. Similar to Chapter 13, it entails reorganization of debt, rather than discharge. The debtor has to come up with a plan to reorganize its debts, and this plan must then be approved by a vote of the participating creditors. Once the plan is approved, the debtor has to carry it out.
How Can a Nebraska Bankruptcy Lawyer Help?
Filing for bankruptcy is a very big decision, frought with risks. However, in some cases, the benefits might outweigh the costs. Because of this, it is important to seek the advice of a Nebraska bankruptcy lawyer, who can advise you of the likely consequences of filing, and whether or not doing so is likely to benefit you.
Interesting Facts About Nebraska
Nebraska is situated in the Great Plains region of the U.S. The Missouri River runs through the state, and is one of the top states for ranching and farming. The state's capital is Lincoln, which is where the state capitol building is located. The Nebraska Supreme Court meets on the second floor of the capitol building.
Many Nebraska court decisions have helped shape American law. One of these is the case of Meyer v. Nebraska (1923), involving the applications of Due Process rights under the 14th Amendment to the U.S. Constitution. Another important case is that of Nebraska Press Assn. v. Stuart (1976). The Nebraska Press case also involved constitutional rights, and has been cited as a reflection of the nation's emphasis on freedom of speech.
Nebraska's court system has played a vital role in the state's history. Many Nebraska court houses were constructed in the early 1900's, and some are now listed in the National Register of Historic Places. Historic court houses in Nebraska include those in Sioux County and in Dawson County. In addition to the county courts, there are also District Courts, a Court of Appeals, and the Supreme Court in Nebraska.
Lawyers in Nebraska are familiar with the individual rules and regulations that make up the state's laws. You may wish to contact a Nebraska lawyer if you have any legal questions or concerns about a legal dispute. A Nebraska attorney can also be helpful during the planning stages of different endeavors.