Bankruptcy Essay

When you file bankruptcy, whether it be a Chapter 7 or Chapter 13 filing, the bankruptcy trustee plays a big role in the process. Once you and your bankruptcy attorney have filed a successful bankruptcy petition, the bankruptcy court assigns a bankruptcy trustee who will be charged with executing your estate. In a chapter 7 bankruptcy the trustee will sell your non-exempt property and use the proceeds to pay back your creditors. In a Chapter 13 bankruptcy case, you make one monthly payment to the trustee who then devise it up to your creditors according to the payment plan that the court approves. Anyone filing bankruptcy must be completely honest and forthcoming about their accounts, assets, money, and property. You cannot hide or get rid of money or property before or during a bankruptcy without getting it approved by the trustee and courts. A bankruptcy attorney will be able to explain this to you in greater detail and offer you advise on property that you do want to get rid of.

Next, you will want to make sure that you feel comfortable with the bankruptcy lawyer you choose. Since bankruptcy can be a very touchy

Most people file for bankruptcy because they’re indebted to a person or corporation, like a bank for example. When you file for Chapter 7 bankruptcy, an impartial trustee is appointed to your case and handles the liquidation of

In this regard, Ayotte and Skeel (2010) conclude that, “Bankruptcy has proven to be an adequate mechanism for handling the former choice, and it is flexible enough to accommodate the latter” (p. 470). In sum, then, although the optimal time for filing a chapter 11 bankruptcy petition will depend on the unique circumstances of the firm that is involved, filing before the firm becomes too severely financially distressed appears to be the superior alternative to filing later.

When reviewing the American Bankruptcy Institutes website I was researching the total number of bankruptcies in 2012, the total number of non-bankruptcies in 2012, and the total number of business bankruptcies in 2012. My findings concluded that the total number of bankruptcies in 2012 which consists of business and non-business fillings which includes the states and D.C. was 1,232,294 (ABI, 2013). The total number of non-business filings in the states and D.C. in 2012 was 1,232,294. The report shows that there were 811,789 non-business Chapter 7 filings and 352,553 non business Chapter 13 filings in 2012 (ABI, 2013).

Most people would like nothing more than to be freed from their financial debt. Personal bankruptcy can provide you with legal protection from your creditors and take care of much or all of your debt. There is the chance you will get to keep your home and car. In other words, personal bankruptcy can be the salvation to financial ruin. By wiping out your old debts, you will find yourself in a better position to pay your current bills.

Many bankruptcy filers don’t have an extensive history of bad credit. A large portion actually went into the bankruptcy process with decent to good credit. Bankruptcy provides relief to out of control debt or financial situations that have no other solution. They come out with a discharge of their debt

Not everyone qualifies for Chapter 7 bankruptcy. Therefore, filing for this type of protection is only a good option for you if you meet the eligibility requirements. Among other qualifications, your income must be under the state median in order to file Chapter 7 bankruptcy, according to the United States Courts. If your income is over the median, you may still qualify if you are able

Consulting with a seasoned bankruptcy lawyer can help you obtain a better understanding of your options. Depending on your unique situation, you may benefit from negotiating a debt reduction or payment plan as opposed to filing for bankruptcy. Should you and your attorney determine that filing is the best available option, he or she will be able to explain the benefits and differences between the various bankruptcy options.

As a southern California bankruptcy attorney, I receive a lot of questions. Most are from people who want to file bankruptcy, just filed bankruptcy or filed years ago and are now wondering how it could affect their current situation. What we don't usually get are questions from creditors regarding how to respond to a bankruptcy filing. That makes today’s question particularly interesting because it’s from a creditor and it involves some very specific circumstances.

The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with regular income is known as Chapter 13 bankruptcy. Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.

While filing for Chapter 7 is not for everyone, the process can provide quite a few benefits under the right circumstances. For instance, you may be eligible for certain exemptions which will allow you to retain a good portion

Bankruptcy - This option removes a good portion of debt entirely, with a few exceptions, such as student loans and mortgages. However, the filing and attorney fees can be high and are often required during the process.

Chapter 11 bankruptcy gives the debtor a chance to reorganize debts. After filing a Chapter 11, the bankruptcy court issues an automatic stay that keeps creditors from attempting to collect repayment from the business. While the automatic stay is in place, the debtor works on a repayment plan. As with Chapter 13, the plan typically includes reduced amounts owed or reduced interest rates. The repayment plan under Chapter 11 is called a reorganization plan. The business’s goal is to stay profitable while paying back debts, so they try to renegotiate contracts, leases, or other debts to get amounts reduced or discharged.

Over the years, the process of declaring bankruptcy has become incredibly simple. Because of this change, the number of people declaring bankruptcy is at an all time high. Today, bankruptcy is a common thing among companies and individuals alike. The American bankruptcy law allows people to avoid paying their debts by offering the debtors a discharge without a harsh consequence. By not having repercussions for their actions, bankruptcy filers often plan future bankruptcies, allowing them to steal even more money from creditors with no punishment. There are 13 different chapters in the bankruptcy system with the principal chapters being 7,11, and 13. You can only file for bankruptcy under these three chapters, the others are there to