Different Chapters Of Bankruptcy
It never hurts to talk to a lawyer, and it may be the best thing you can do if you think you have a legal problem that you cannot resolve yourself. If you are persistent, you can probably arrange a free consultation with a lawyer who will talk to you on the matter. If facing bankruptcy, perform a bankruptcy search on the internet. You will find a wealth of information at your fingertips.
There are five chapters of bankruptcy, which a person may file. Performing a bankruptcy search on the internet will bring up plenty of information of the different chapters.
Chapter 7 bankruptcy is called “straight bankruptcy.” Chapter 7 is a liquidation bankruptcy proceeding. The person filing for bankruptcy turns over all non-exempt property (assets) to the bankruptcy trustee who then converts it to cash for distribution among the creditors. At the end of the proceeding, the person filing or debtor receives a discharge of indebtedness (discharge notice) for all dischargeable debts, releasing him or her from personal liability for those debts. When performing your bankruptcy search this may be the most common bankruptcy filed by an individual.
Chapter 9 bankruptcy is known as ‘Adjustment of Debts for a Municipality.’ Chapter 9 is a federal mechanism for the resolution of municipal debts passed by the United States Congress about 60 years ago. This form is similar to reorganization under Chapter 11, but it is only available to municipalities. Municipalities include cities and towns, as well as villages, counties, taxing districts, municipal utilities, and school districts. Performing a bankruptcy search will provide more information on chapter 10 information.
Chapter 11 bankruptcy is known as ‘Reorganization.’ Chapter 11 is normally the chapter under which a business or their lawyers file. This allows the business to continue its operations while repaying creditors concurrently through a court-approved plan of reorganization. Performing a bankruptcy search will provide more information on chapter 11 information.
Chapter 12 bankruptcy is known as ‘Adjustment of Debts of a Family Farmer with Regular Annual Income.’ Chapter 12 provides debt relief to family farmers. Chapter 12 proceedings are quite similar to the proceedings of Chapter 13 where the debtors or their lawyers propose a plan to repay the debts over a period of up to three years, unless the court approves a longer period but no more than five years. Performing a bankruptcy search will provide more information on chapter 12 information.
Chapter 13 bankruptcy is known as ‘Adjustment of Debts of an Individual with Regular Annual Income. Chapter 13 provides debt relief for individuals or consumers. Chapter 13 is different from Chapter 7 in the respect that it enables the debtor to keep valuable assets, such as their house, while making payments to creditors (through the trustee) based on the debtor’s anticipated income over the life of the plan which is usually three to five years. At a confirmation hearing, the court either approves or disapproves the plan, depending on whether the plan meets the Bankruptcy Code’s requirements for confirmation. Performing a bankruptcy search will provide more information on chapter 13 information.
All things Bankruptcy including Bankrutpcy Marketing and Personal Bankrutpcy Issues.
by T.D. Houser
Tags: bankruptcy, bankruptcy list, bankruptcy mailing list, bankruptcy marketing, bankruptcy search
Related Posts
admin on December 26th 2007 in Finance
Leave a Reply
You must be logged in to post a comment.