Chapter 13 Bankruptcy Summary Chapter 14

Chapter 7 is often the quickest and simplest form of bankruptcy and is available to just about anyone including: Married couples, individuals, and corporations. When a person is considering filing for Chapter 7 bankruptcy the first thing that is often on their mind is the amount of property and assets they will be able to keep.

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.

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

A company’s ultimate goal is to be profitable, maintain a loyal customer base, and remain in business for a long time. Unfortunately, there are unforeseen incidences that can alter a company’s present and future plans. The economy has a downfall, a company loses some major clients, or improper business practices to name a few, can result in a company venturing into bankruptcy. Bankruptcy exists as a court procedure where a judge and court appointee analyzes the assets and liabilities of individuals and businesses who cannot afford to pay their obligations (Debt.org, 2017). The judge and court appointee have the task of deciding whether these individuals or businesses will be legally exempt from settling their debts with their creditors. The laws that are accompanied with bankruptcy are; statutory law and administrative law.

In the United States, if someone incurs more debt than they are able to recover from, for example a small business failure, then thy can file bankruptcy. According to this ancient code, “If any one owe a debt for a loan, and a storm prostrates the grain, or the harvest fail, or the grain does not grow for lack of water; in that year he need not give his creditor any grain, he washes his debt-tablet in water and pays no rent for this year.” , (King 2008). Basically, exceptional financial debt circumstances were considered forgivable just like in today’s

Trustee asks questions to determine whether there is property available for sale in order to satisfy all or a portion of your debt. If your property is exempt, then the Trustee cannot sell any of your property. In a Chapter 13 Case, the Trustee asks questions to determine whether the monthly payment that you and your attorney have proposed is sufficient to pay each type of creditor the amount required under the Bankruptcy Code. Each type of creditor may be treated differently, and some creditors may not receive any money during the entire term of your Chapter 13 Case, depending upon your unique circumstances.

Chapter Seven personal bankruptcy is many times known as "straight" or alternatively "liquidation" bankruptcy -- it cancels your current debt, but one may have to let the bankruptcy court liquidate some of an individual's possessions for the benefit of your debt collectors. ("Chapter 7" pertains to the section of the particular federal government Bankruptcy Code which has the bankruptcy legislations.)

When in the midst of a Chapter 13 bankruptcy plan, filing for a divorce will mean revisions that have to be accepted by the bankruptcy trustee. Since many Chapter 13 bankruptcy plans are very strict and leave very little “extra” cash, many feel as if they are left in an impossible situation. One or both of the parties want to leave the marriage, but they’re already in a strict repayment plan. In many cases, the repayment plan is based on parties being required to work full time (some up to 7 days a week) in order to make their agreed upon payments in a timely manner. Parties aren’t sure whether the Chapter 13 trustee will revise the plan in order to compensate for separate living expenses, spousal maintenance costs, etc. It seems as if the new development of an impending divorce could make all past efforts to get out of debt through the Chapter 13 bankruptcy pointless. In this instance, there are two options open to the parties involved in the bankruptcy and seeking divorce: reduce the Chapter 13 plan payment to accommodate two separate households or convert the bankruptcy to a Chapter 7. Today, we’ll discuss the first option more in depth.

The fundamental motivation behind a chapter 11 legal advisor is to help an individual or business experience the legitimate systems for recording liquidation. Legal counselors are intended to help manage lenders, meet with the court frameworks to set up installment arrangements or

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).

It allows you to keep your property. Chapter 13 bankruptcy stops any foreclosure proceedings and allows debtors to catch up on their mortgage payments. You also have better chances of keeping your car with the help of a restructured loan. 3. It teaches you to have better spending habits and budgeting practices.

White breaks down the two main types of personal bankruptcy; White says both types first require credit collectors all actions to get the debtor to repay their debts. She then goes on to explain which debts are wiped clear from being paid back and the main difference between the two types of bankruptcy. Chapter 7 only makes debtors repay back from their own current money and Chapter 13 lets debtors repay by taking money out of their future earnings.

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

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.

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