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Chapter 13 Bankruptcy Article
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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.
Chapter 13 Bankruptcy News
Bankruptcy claim survives against former Erie debt collector - GoErie.com
Bankruptcy claim survives against former Erie debt collector GoErie.com When he filed for Chapter 13 bankruptcy, or wage-earner's bankruptcy, in March 2011, Covatto valued his assets at $122991, listed liabilities of $272663 and proposed a plan in which he would repay his creditors $975 a month for two years. |
What's Cure for My Whopping Medical Bill? - Fox Business
What's Cure for My Whopping Medical Bill? Fox Business If you don't qualify for a Chapter 7, I suggest you determine which would cause less damage to your finances: filing a Chapter 13 bankruptcy or allowing the collector to garnish your wages. A creditor can garnish only a maximum of 25% of your income ... |
As Predicted, Ally Bankruptcy Will Delay Loan Modifications, Settlement ... - Firedoglake
As Predicted, Ally Bankruptcy Will Delay Loan Modifications, Settlement ... Firedoglake Unemployment caused the Westchester family to miss mortgage payments and seek Chapter 13 bankruptcy protection. Now they are in limbo, awaiting approval by the ResCap Chapter 11 judge. “Resolution is on hold,” said the family's lawyer, Linda Tirelli, ... Bank's no Ally for NY homeowners |
Advantage CCS is Proud to Offer a Telephone Bankruptcy Education Class for ... - PR Web (press release)
Advantage CCS is Proud to Offer a Telephone Bankruptcy Education Class for ... PR Web (press release) This law stipulates that consumers must receive credit counseling and bankruptcy education from an approved nonprofit credit counseling agency in order to discharge the bankruptcy case. The legislation covers both Chapter 7 and Chapter 13 bankruptcies. |
Chapter 13 Bankruptcy: Repaying Personal Debts - Go Banking Rates
 Go Banking Rates | Chapter 13 Bankruptcy: Repaying Personal Debts Go Banking Rates By GoBankingRates Staff The second most common form of personal bankruptcy, Chapter 13, is designed as a debt repayment plan for those people who have enough income to pay down their debts over time. Filing chapter 13 bankruptcy is often seen as an ... Bankruptcy does not prevent actions to collect assessments |