Chapter 7 Bankruptcy Case Study

Chapter 11 is referred to as the reorganization bankruptcy. A debtor that files Chapter 11 may obtain approval from the court to continue operation of their business (UScourts.gov). In this chapter, the value on a secured debt, such as equipment loans, mortgage loans, or car loans can be adjusted to the market value. The unsecured debt owed to creditors can also be reduced. This chapter requires payments to your creditors. The payment plan usually lasts for five years. However, the court may require that the payment plan be extended past the five-year mark for business owners and corporations.

A petition filed for Chapter 7 bankruptcy will require the debtor to liquidate most of their assets to pay off their creditors. There are three goals for the debtor when filing a Chapter 7 petition, those first one being to claim their assets as “exempt” from creditors, secondly to obtain a discharged of responsibility for the debt listed in the petition and the third being the automatic stay which halts the creditors from attempting to collect or garnish wages once the petition is filed.

Chapter 7 bankruptcy: the bankruptcy in chapter seven is known as a liquidation process. This process is used when a corporation basically has no other alternatives in saving the corporation and has the ability to attain the essential creditor settlement. All of the corporation’s possessions have to be vended for their palpable value. There has been over a numerous amount of corporations who have declared bankruptcy on a yearly basis. Chapter 9 bankruptcy: this bankruptcy applies to all the cities in all areas. The biggest city to ever announce bankruptcy is Detroit, Michigan. However, there have been others such as: Stockton, California, and lastly, Birmingham, Alabama. Chapter 11 bankruptcy: this bankruptcy means that corporations are able

No doubt if you are encountering financial difficulties and your debt is just rising by the month, you must have contemplated filing for bankruptcy protection. The most "popular" choice is to file for Chapter 7 bankruptcy. Chapter 7 bankruptcy is named such because it is chapter 7 under the bankruptcy law. Chapter 7 is synonymous with liquidation or straight bankruptcy. It is also named liquidation bankruptcy because your assets can be repossessed and sold off to fulfill the debt obligation to the creditors. Exactly what is involved in a Chapter 7 bankruptcy filing?

Foreclosure is a sad development in our depressed economic conditions that we face in the United States today. Decent people, who for one reason or another, that once could afford their homes now unfortunately cannot. Due to circumstances beyond their control they lost control financially and momentarily overextended themselves and their financial ability. This does not have to be their proverbial ‘swan-song’. Committing financial ‘suicide through filing bankruptcy can only compound their troubles, making their matter worse for a minimum of seven years.

Like many in Tennessee who are dealing with financial challenges, you may have considered filing for bankruptcy. However, the possibility of losing your home may have stopped you from taking this step. At Rothschid & Ausbrooks, PLLC, we are often asked what options you have for saving your home. In this post, we will discuss how filing for Chapter 13 bankruptcy may allow you to keep your property.

Bankruptcy cases are the intricate legal proceedings that relieve a debtor of his huge debts either by liquidating his non-exempt assets or reorganizing them.

Bankruptcy can make mortgage payments on a home complicated, to say the least. Many people find themselves with no other option but to leave the house they have a mortgage on when they attempt to obtain the protection from debt that bankruptcy was designed to provide. Because of this, I am often asked whether or not a person could walk away from a home and a mortgage that are included in their bankruptcy. The simple answer to this is yes, you definitely can. However, there are a few things to consider.

Most people have erroneous ideas about bankruptcy. This is understandable since bankruptcy is a complicated process. Filing for bankruptcy can be a scary and intimidating experience. The stigma that is associated with bankruptcy might deter people from seeking help. A bankruptcy attorney can advocate for his clients.

Some of the most common questions we hear at our Sacramento bankruptcy office are centered on how bankruptcy affects tax debts. It’s not surprising that individuals want to know how filing a Chapter 7 or Chapter 13 bankruptcy will affect those tax debts imposed by the IRS. The good news is that in certain situations, you can discharge tax debt using Chapter 7 bankruptcy, and in other situations you can gain additional time to pay back taxes using Chapter 13 bankruptcy.

Buying a home is one of the largest investments you will ever make, so you may feel a great deal of anxiety and worry over losing your house while going through chapter 13 bankruptcy. Thankfully, this is the best case scenario when going through financial hardships, since it allows you to keep your home and other certain assets. Here are a few things to know when filing bankruptcy to save your home.

Bankruptcy is a statutory proceeding with detailed procedures and requirements. The bankruptcy filing that I believe is most appropriate for Peter is Chapter 13 bankruptcy. To be eligible for Chapter 13 bankruptcy, the individual must owe unsecured debts less than $383,175 and secured debts of less than $1,149.525 and have a regular income. Peter has regular income because he is employed as an electrician. Chapter 13 works with consumer debtors to develop a plan to repay debt. In Peter’s case, Chapter 13 would allow him to make a payment plan in order to pay back his two main debts, his auto repair costs and the mortgage payments. If the court approves Peter of a payment plan, Peter may then pay the debts in the installment specified by the

Filing Chapter 7 bankruptcy is not a scenario hard-working individuals commonly anticipate. Sudden illness, loss of employment, and other unexpected financial setbacks can devastate personal savings, placing stress and uncertainty on the back of an otherwise happy home.

Chapter 7 bankruptcy is available to Celia for her credit card debt and in some circumstances for including her student loans (Forgiveness, Cancellation, and Discharge) (Twomey & Jennings, 2014, p. 747).

This essay offers perspective in response to the question, “Do you think that it is fair to prevent certain people from filing for Chapter 7? Why or why not?” Accordingly, the points of view expressed take into consideration the historical context of bankruptcy in the United States, contributing factors to the inequities of our economic environment as well as the actors who ultimately benefit from the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, specifically as it relates to its imposed limitations through implementation of the means test.