Filing For Chapter 7 Bankruptcy

Thinking about filing bankruptcy? If so, it's important to know that there is more than one kind. Chapter 7 bankruptcy is one of them.




Filing For Chapter 7 Bankruptcy

Filing Chapter 7 Bankruptcy is a process through which the debtor's debts are liquidated. It is simpler and quicker than Chapter 13 Bankruptcy, which is a process by which the debtor repays a portion of his or her debts over time. It is a process through which all of the debtor's non-exempt property is turned over to the bankruptcy trustee, who then sells it or liquidates it to re-pay money to the creditors. In most cases, all of the assets of the debtor are "exempt", meaning they cannot be touched by creditors or the bankruptcy trustee. This is sometimes referred to as a "no-asset" Chapter 7. Most people do not lose property in a Chapter 7 Bankruptcy.

In order to file for Chapter 7, you must first qualify under the new "means test". The means test determines whether or not you make too much money to file for Chapter 7. The calculation under the means test is based on household size and family income. If you are over the means test, you may not be able to file for Chapter 7 bankruptcy. You may instead have to file your case under Chapter 13, which is a repayment plan. The figures for the means test are updated from time to time. You should check the website for your local bankruptcy court and search for the current numbers.

Before filing Chapter 7 Bankruptcy, you must also complete an approved credit counseling course. This course generally costs between $30-$60, but can be waived if your income is low enough. You must also complete a pre-discharge course after your case has been filed. You will not receive your bankruptcy discharge until you complete this course.

After your case is filed, you will have a meeting with your bankruptcy trustee. This meeting is referred to as the Meeting of Creditors, or 341 Meeting. But this is an opportunity for your creditors to appear and ask you questions in almost every case, creditors are not present.. Usually you, the trustee and your attorney are present. The trustee will swear you in, tape record you and ask a series of questions. For the most part, the hearing lasts only 5 to 10 minutes. Remember that during this hearing you are under oath and subject to a charge of perjury if you intentionally lie. The trustee may conclude the hearing or may request additional information from you. This is normally the only hearing you ever have.

After the hearing, your creditors have 60 days to object to your discharge. Normally, there are no objections. If there are no objections, you have completed your pre-discharge education course, and the trustee is in agreement, you will receive your discharge approximately 60 days after that hearing. After receiving your discharge, you are not eligible to file another Chapter 7 and get a discharge for 8 years from the date of filing of your first case.

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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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http://gitundu.com/2009/04/21/refinancing-after-bankruptcy/

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