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Looking at the Forms Bankruptcy Can Take
from:There are many types or forms bankruptcy can take. The US bankruptcy laws are designed to help individuals, businesses and even municipalities that are having severe debt problems that appear to be unsolvable within the current income or revenue levels. There are many reasons why this happens, but the reasons seem unimportant when buried under a mountain of debt. As many people discover when bills become backlogged, debt collection practices are harsh. The phone rings off the hook with collectors, and the late notices and penalty charges only seem to make the situation worse by the day. When you owe back taxes, the IRS is relentless when it comes to collecting the money.
The forms of bankruptcy are defined as chapters. The chapters were written to provide a specific form for filing when you are an individual, farmer, business, or municipality. Most people are aware of the availability of bankruptcy laws applicable to people and businesses, but even counties and cities can find themselves unable to pay their debt. Right now there is a current case in Alabama in which a county cannot pay its sewer bonds and is considering filing bankruptcy.
The first form bankruptcy takes for individuals is chapter 7. A chapter 7 is a liquidation bankruptcy in which your non-exempted assets are used to pay off as much debt as possible and the remaining balances are eliminated. A chapter 13 is called an individual debt adjustment form. In this case, an individual agrees to a court defined debt repayment plan.
Another form bankruptcy can take is chapter 11 which is a business reorganization plan. Under this chapter, the business asks for the debt to be adjusted in a way that makes it workable. The business can also ask for a total reorganization which is often what you read about large corporations doing in order to stay in business. Farm businesses, on the other hand, will file a chapter 12 when needing debt relief.
The other types of bankruptcies are chapter 9 for municipalities and chapter 15 for ancillary cases or cases which don't fit the other defined chapters. There are even bankruptcy laws that address service people who are unable to pay their debts because they are overseas serving their country.
It is easy to see how complex the bankruptcy codes really is and it is a work in progress too. Every day new court cases refine the code based on actual experiences. A good bankruptcy attorney will always stay current on the laws so that you are able to get the best advice possible. The goal is to help you or your business start over again financially, but in a way that is the best fit for your situation.
Bankruptcy Mortgages News
Mortgage and Securitization Fraud: Where Is the Task Force? - Huffington Post (blog)
Mortgage and Securitization Fraud: Where Is the Task Force? Huffington Post (blog) They told members of Congress that the banks were drowning in bad debt and without a massive bailout they would soon be forced into bankruptcy. Congress quickly coughed up the money in the form of $700 billion in TARP loans. |
As Predicted, Ally Bankruptcy Will Delay Loan Modifications, Settlement ... - Firedoglake
As Predicted, Ally Bankruptcy Will Delay Loan Modifications, Settlement ... Firedoglake When Ally Financial's mortgage unit Residential Capital filed for bankruptcy last week, I had an inkling it would spell trouble for the foreclosure fraud settlement the parent company signed with state and federal regulators. How would individuals get ... Bank's no Ally for NY homeowners |
Ally Financial says its Residential Capital mortgage unit seeks Ch.11 ... - Washington Post
 USA TODAY | Ally Financial says its Residential Capital mortgage unit seeks Ch.11 ... Washington Post Residential Capital LLC, or ResCap, filed for Chapter 11 bankruptcy protection in New York, unable to make payments on debt taken out to finance soured home mortgages. The filing will separate the money-losing ResCap subsidiary from Ally's auto loan ... Former GMAC puts mortgage unit in bankruptcy Ally Fincl: Rescap Mortgage Subsidiaries File Chapter 11 Ally to Sell Non-U.S. Units as ResCap Mortgage Goes Bankrupt |
Ally Financial's ResCap mortgage unit seeks bankruptcy protection - Los Angeles Times
 New York Times | Ally Financial's ResCap mortgage unit seeks bankruptcy protection Los Angeles Times AP The US government is hoping that the bankruptcy filing by Ally Financial Inc.'s troubled mortgage business will help the company repay its government bailout faster. Residential Capital, or ResCap, filed for Chapter 11 bankruptcy protection in New ... Ally's Mortgage Unit, ResCap, Files for Bankruptcy Ally Financial's ResCap mortgage unit files for bankruptcy Bankruptcy aims to free Ally of bad mortgage assets after auto rescue |
Buffett Said to Have Sought ResCap Purchase Before Bankruptcy - Bloomberg
 Bloomberg | Buffett Said to Have Sought ResCap Purchase Before Bankruptcy Bloomberg Buffett sought to avoid a ResCap bankruptcy filing because Berkshire had unsecured debt in the mortgage unit, according to the people. Detroit-based Ally turned down the Weschler proposal after deciding that a bankruptcy filing and sale better ... Allstate, AIG And Others Named to ResCap Creditors Committee |