Comparison Of Chapter 7 Bankruptcy And Chapter 13 Bankruptcy

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.

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.

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.

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

Chapter 11 is generally used by businesses, partnerships, limited liability companies, and corporations; however, individual debtors who do not qualify for Chapter 13 because their debt exceeds the debt limit, may also file Chapter 11.

I choose to discuss the role of the trustee in Chapter 7. When a Chapter 7 bankruptcy is filed, an impartial bankruptcy trustee is appointed to oversee and administer the case. The Chapter 7 bankruptcy trustee has many responsibilities that come with this appointment. It is the trustee’s job to review your bankruptcy petition and verify the information and calculations using your financial documents and other independent sources. For example, if you state that you make $3,000 a month in your bankruptcy papers, the trustee will compare that against your pay stubs to make sure the figure is accurate. The Chapter 7 bankruptcy trustee determines the value of property to see if you own any nonexempt assets that should be sold to pay your creditors.

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

Bankruptcy is not an easy decision for anyone, unfortunately, it may be the only decision for some people trying to keep their heads above water in uncertain times. Residents of Columbus, and Ohio in general are continuing to face economic uncertainty that wreaks havoc on their finances.

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

Certain individuals may not qualify for Chapter 7 as the court implements a sophisticated test to determine an individual’s ability to wipe out their debts entirely.  Chapter 13 filings are more complicated than Chapter 7 bankruptcy and requires the experience of an attorney who knows the Federal Courts, the judges, and the trustees who will be approving your repayment plan. Contact Bartolone & Batista today for a free consulation at 1-800-974-5272More Chapter 13 Bankruptcy InformationChapter 11

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.

Most state exemptions allow you enough so that most things you own will be exempt from bankruptcy, sometimes allowing more coverage to keep your property than you need. Additionally, you will get to keep the salary or wages you earn and the property you buy after you file for Chapter 7