Chapter 7 Bankruptcy

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

Although a fundamental lack of money is the essence of most types of bankruptcies, there are some common causes as well. For instance, Krulick (2016) reports that, “Chapter 11 is used primarily by larger companies that want to continue doing business throughout the bankruptcy process and after it is completed” (p. 3). In addition, even some solvent firms may elect to seek the shelter of a chapter 11 proceeding to allow them sufficient time to reorganize (Krulick, 2016). Some of the common causes of consumer bankruptcies include the following:

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).

There are many reasons people find themselves in the situation of filing for bankruptcy. These include credit card debt, medical expenses, loss of job and divorce. If you determine that this may be the right course of action for you, you should consult with a Sacramento bankruptcy lawyer who has experience in the personal bankruptcy field. This is an important decision and the laws can be very complicated.

The entire point of filing for bankruptcy is to receive a discharge of your debt. You contact an experienced southern California bankruptcy attorney, make sure to provide them with all the necessary information, include every creditor in the paperwork…and then await the big day. Once you receive your bankruptcy discharge you’re done, right?

Filing bankruptcy is a stressful, emotional process that should not be taken lightly. Bankruptcy laws are complex and difficult to navigate. With the different types of bankruptcy available, how will you figure out which path is right for your case? If you are interested in declaring bankruptcy, you should hire a bankruptcy attorney in Dallas, Texas. A bankruptcy attorney in Dallas, Texas will help you understand bankruptcy laws and will work with you to protect as much of your property as possible.

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.

When you make the decision to file for bankruptcy protection, it is important to seek the advice of an experienced bankruptcy attorney. You want to make sure that your filing is done right the first time. This will save you time, money and stress.

Chapter 12 bankruptcy is a new form of bankruptcy that is specialized for family farmers and family fishers. Chapter 12 bankruptcy laws were permanently enacted in 2005, however, very few individuals qualify for this type of bankruptcy (O’Neill). To qualify for Chapter 12 bankruptcy, the debtor must be involved in farming or commercial fishing operations, “The total debts (secured and unsecured) of the operation must not exceed $4,031,575 (if a farming operation) or $1,868,200 (if a commercial fishing operation)”, for farmers at least 50% of the debt and for fisher 80% of the debt must be related to their job, and “more than 50% of the gross income of the individual … must have come from the farming or commercial fishing operation” ("Chapter

If you are planning to file a personal bankruptcy case, you should understand that the law requires you to treat all of your creditors similarly according to the type of debt they hold. The law prohibits you from “preferring” one creditor over the others.

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

In addition to your other debts, you may have fallen behind on your mortgage payments. If this is the case, then your lender may have started foreclosing on your home. According to the U.S. Courts, filing for Chapter 13 bankruptcy will stop foreclosure proceedings. After you have declared Chapter 13 bankruptcy, an automatic stay will be triggered,

When filing for Chapter 7 bankruptcy, your income is taken into consideration. You must qualify under the income portion of the Chapter 7 bankruptcy. You have to consider your assets. If you have too many, you may not qualify. An inheritance would definitely be counted as an asset. It will require careful

Most people file Chapter 13 bankruptcy because they need to save their home and get caught up on mortgage payments, or because their household income is too high to file Chapter 7. Chapter 13 is a repayment plan for some or all of one’s debt over a 3 to 5 year period. Chapter 7, however, wipes out unsecured debt like credit cards and personal loans while allowing you to keep your home and other assets, such as vehicles. If you are currently in a Chapter 13 bankruptcy, it would be beneficial for you to switch to a Chapter 7, as that would allow you to walk away from the house without affecting the bankruptcy. Of course, this begs the question, are you eligible to file for a Chapter 7 bankruptcy?

Chapter 7 bankruptcy requires individuals to sell off all of their assets and use the funds to pay back any debts and creditors. As a result, one of the many assets that people who file for chapter 7 bankruptcy immediately sell is their home. Homes that are sold by a chapter 7 bankruptcy owner tend to be priced a lot lower. This is due to the fact that the owner is looking to offload their possessions and pay off their debts as soon as possible. While these kinds of homes can be a good deal it is still important to use caution when going through with the purchase. There a few things you should consider before purchasing a home from a chapter 7 bankruptcy trustee.