File Bankruptcy (Chapter 13)

Bankruptcy is a long and sometimes confusing process. Be informed on how to file, what the qualifictions are, and who is eligible. Do not file bankruptcy without reading this first.




File Bankruptcy (Chapter 13)

While bankruptcy seems like an easy way out for some people there are a lot of things to consider before you file bankruptcy. The process is not always the same and it depends on who is actually filing. If a person or individual files bankruptcy process is completely different than if a business files for bankruptcy. For example, a business cannot even file for Chapter 13 bankruptcy. Instead the business must file a Chapter 11 bankruptcy.

A sole proprietorship must file Chapter 11 also. However, if an individual who owns a sole proprietorship files bankruptcy, they may file under Chapter 13. They would then take on the business related debts which they are personally (and legally) responsible for.

In order to file bankruptcy under Chapter 13, the individual must have a steady earnings or else they will not qualify. A steady income is income that will always occur at regular intervals (daily, weekly, monthly, quarterly, semi-annually, or annually). Your normal salary or hourly wage can fund a Chapter 13 bankruptcy. To get a good idea of what type of steady income qualifies, here are some examples: commissions from sales, disability, unemployment, worker's compensation, self employment, child support, and real estate.

The individual who will file bankruptcy needs to be able to support themselves on this steady income. This has to cover your daily needs and anything that is necessary to survive. The individual must also have some money left over each month. This money is used to pay off the remaining debts they have. This is a lengthy process that can go on for a few years. The amount that must be paid each month is different for each bankruptcy case. The total amount of debt the individual is in will play a large role.

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bankruptcy chapter 7

What Chapter 7 Bankruptcy Law Entails

The old bankruptcy rules allowed people to choose the chapter that was best for them. In this case most people chose chapter 7 which was more convenient. This allowed people to file for failure to pay their dues before going through credit counseling. However under the new law, this may not be applicable.




What Chapter 7 Bankruptcy Law Entails

The old bankruptcy rules allowed people to choose the chapter that was best for them. In this case most people chose chapter 7 which was more convenient. This allowed people to file for failure to pay their dues before going through credit counseling. However under the new law, this may not be applicable. The new law requires for one to first go through counseling on how to handle credit.

Chapter 7 bankruptcy is also known as liquidation. It allows for the debtor's property to be sold and the proceeds to be divided amongst the creditors. However under the new rule issued to courts, this may be difficult in that the law has been changed. For one to file a petition, one must go through what has been named as the mean test. The person's/ organization's income has to be looked into. If it passes the median, then the law does not apply. It will only apply in case the debtor's disposable income after some amounts of expenses have been reduced is below the state median.

Debtors should understand that there is an alternative to chapter 7 bankruptcy. The 11th and 13th ones have an option of having the debtor's debt adjusted. This is through a code that allows debts to be reduced to a certain amount. In this case, the debtor will be better able to repay its debt, according to the disposable income is available.

For this law to be effective, a petition by the debtors should be filed after the creditor(s) has/have filed theirs. They are also required to have a trustee appointed by the bank. The role of the trustee is to act on behalf of the debtor as far as settling the debts is concerned.

Peter Gitundu Researches and Reports on Bankruptcy. For More Information On How To Deal With Bankruptcy, Read More Of His Articles Here DEALING WITH BANKRUPTCY You Can Also Add Your Views About How To Deal With Bankruptcy On His Blog Here DEALING WITH BANKRUPTCY

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Municipal Bankruptcy Chapter 9

The main purpose of the municipal filing a petition with the court is to seek protection against certain actions that the creditors might choose to take against it. This law also protects the debtor, who in this case is the municipal from harassment from the creditors.




Municipal Bankruptcy Chapter 9

The main purpose of the municipal filing a petition with the court is to seek protection against certain actions that the creditors might choose to take against it. This law also protects the debtor, who in this case is the municipal from harassment from the creditors. Though there is no provision for liquidation under this chapter, filing this petition in court acts in the interest of protecting anyone under its jurisdiction. Liquidation or its dissolution would in no doubt go against the Tenth Amendment to the Constitution.

Filing of the petition is voluntarily done by the debtor. Once the application has been submitted, the Chief Justice to appoint a special judge often referred to as Bankruptcy Judge. This is done with the aim of removing politics that may negatively influence decisions made on the case.

Before the commencement of the case, the municipal faced with bankruptcy must first give notice to the court and the general public. It must therefore, through a court clerk, notify the court of its intentions. The court will thereafter recommend a newspaper in which the it must publish a notice at least once a week for three consecutive weeks.

Once the notices have been filed and have been published, the case may begin. However it is not always a guarantee that the court will commence the case. It may reject the petition in some cases which are granted by the bankruptcy code. The petition may be rejected in cases where the state has not allowed it to file a petition. It may also be denied in case negotiations have not been done in good faith. In such cases the court will therefore hold hearings of the dismissal of the petition.

Peter Gitundu Researches and Reports on Bankruptcy. For More Information On How To Deal With Bankruptcy, Read More Of His Articles Here DEALING WITH BANKRUPTCY You Can Also Add Your Views About How To Deal With Bankruptcy On His Blog Here DEALING WITH BANKRUPTCY

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Chapter 13 Vs Chapter 7 - Discover the Benefits of Filing For Chapter 13 Bankruptcy

If you have a steady income but are overwhelmed with debt, filing for Chapter 13 bankruptcy might be the best course for you. Chapter 13 gives you five years to repay all of your debts, but under much more favorable terms than the original loan contract.




Chapter 13 Vs Chapter 7 - Discover the Benefits of Filing For Chapter 13 Bankruptcy

If you have a steady income but are overwhelmed with debt, filing for Chapter 13 bankruptcy might be the best course for you. Chapter 13 gives you five years to repay all of your debts, but under much more favorable terms than the original loan contract. 

Here are several advantages to filing for Chapter 13 bankruptcy:

1. Unlike Chapter 7, Chapter 13 does not require you to liquidate your property. If your home is being foreclosed, Chapter 13 will stop the foreclosure proceeding. You will be able to keep the home, as long as you make payments on time during the Chapter 13 bankruptcy plan.

2. Smaller secured debts, such as car payments, can also be rescheduled. Payments can be extended until the end of the Chapter 13 bankruptcy plan.

3. If you have a co-signer on any of your loans, Chapter 13 bankruptcy will protect them from action by your creditors. If you file for Chapter 7, any co-signers may be forced to file as well.

4. Throughout the life of the bankruptcy plan, you will not have to deal with creditors directly. In Chapter 13 bankruptcy, you make all payments to a trustee who distributes the money to each of your creditors. 

Chapter 13 bankruptcy can be an attractive alternative to Chapter 7 if you are employed or otherwise have steady income and just need a little relief from your debtors in order to get back on track. While it's more complex than Chapter 7, you can emerge from Chapter 13 bankruptcy with your debts satisfied and your property intact.

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