Legal courts are available for adults who are in need of legal arbitration or mediation for matters such as divorce and child custody, and courts of law can also be used for bankruptcy filing and bankruptcy law. Bankruptcy can be declared either by an individual or a small business that cannot pay off its debts, and this can be very useful for finding debt relief so that all parties can be satisfied with the outcome. Family court and bankruptcy court can be tricky to navigate alone, so someone looking for a divorce, separation, child custody, or declaring bankruptcy should hire a lawyer, preferably a specialized one, to help them find a meaningful conclusion and navigate the law.
It has been determined that in the United States today, nearly half of all marriages end ind divorce, and separation is also something that some married couples will pursue if they are having marital trouble. In families with minors, a family court will also be used to determine child custody, and this can be something hotly contested between both parties, both of whom may employ lawyers to promote their side.
In the case of separation, the two spouses in a marriage are still legally married and can file their taxes as such, but they will live in separate residences and may have limited contact with each other, and a separation can end with either getting back together or a divorce. Sometimes, one or both spouses is verbally or physically abusing the other or a child of theirs, or is threatening to do so, and this means that any victimized party will want separation until they can determine what else they should do. At a family court, lawyers will be hired from each side, those of whom specialize in family court and marital trouble, and negotiate terms such as restraining orders, privacy, and child custody, and a similar process can be done for divorce cases where a marriage ends. Child support is relevant here too, and child support payments may be set up.
Family court is used for marital trouble, but someone with financial trouble will instead make use of a bankruptcy court, as will companies that find themselves unable to pay their debts. Either way, the debtor party will often begin the process, seeking debt relief, and the court will mediate between them and their creditors, who will often work together as a team. If the debtor is acting in good faith and does not deceive others or commit fraud, then the debtor may remain in possession of its company or other assets and continue work or business as normal. There are conditions attached, however. The debtor may not engage in major activity without the creditors’ or the court’s permission, such as hiring or retaining a lawyer, selling or buying property (aside from what the business or person normally buys or sells), or take out new loans. A debtor who violates these terms may no longer be in possession of their assets.
Another step is for the debtor to create and offer a reorganization plan, one that illustrates how the debtor will restructure its finances, assets, and employees so that it can more effectively pay off its debts, and the debtor will be given a set time period, usually several months, to get this done. The debtor, if it needs more time, can ask for an extension of this time period, and overall, a bankruptcy case can last anywhere from six months to two years, based on how long it takes to create and approve a plan. If needed, the creditors or court can offer a competing plan if time runs out, but this power is not often exercised. More often, the debtor’s plan will be reviewed and accepted, then put into motion. The plan can involve anything from selling assets all the way to liquidating the entire company or enterprise, and the creditors will not always receive all of their debts, but they will receive at least a part of what they are owed, and in some cases, that alone will have to be sufficient. And as with a family court or other legal matter, lawyers will represent their respective sides and use the law to ensure that a legal, fair, and practical solution is created.