A chapter 9 bankruptcy is intended for use only by what is called “municipalities”, which is defined as towns, cities, and counties, among other governing bodies. If you are unsure whether or not you qualify, it is best to get the advice of a bankruptcy attorney. In a chapter 9, the municipality in question is allowed by a court of law to reorganize their debts by refinancing, lowering the interest rate, or even extending the deadline on outstanding bills. In chapter 9, the municipality looking to get a fresh start does not have to list any assets to liquidate, they are merely looking for an extension in order to help get them out of debt.
Source: org.uk
Video: Types of Bankruptcy Bankruptcy Basics Part 2
Is Personal Bankruptcy The Right Choice For Me?
If you file for bankruptcy, it is important to not send your assets to another individual for at least a year before filing. Such an obvious attempt to shield assents can cause your application for bankruptcy to be rejected. Depending on what kind of asset it is and the type of bankruptcy for which you file, you might be able to save it, anyway. In any case, hiding your assets is a bad idea, and if you have made recent transfers, your filing will need to wait.
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Don’t Go Alone: A Bankruptcy Law Blog: What to do when you receive a Notice of Bankruptcy? Step 1: Identify the Chapter
As you can see the title of the Notice identifies whether it is a Chapter 7 or Chapter 13 case. The notices differ as well in terms of the instructions they may provide because of the differences in these types of cases. Below we explain a little more about why the type of case matters. If you would like more information about bankruptcy visit our website. The most common types of bankruptcy that you will encounter are Chapter 7, 11 and 13. Chapter 7 Bankruptcy sometimes referred to as “liquidation”, is designed for debtors in financial difficulty who do not have the ability to pay their existing debts. Chapter 7 is available to both individuals and businesses. Under Chapter 7 the debtor may claim certain property as exempt under the governing law. A trustee may have the right to take possession of and sell the remaining property that is not exempt and use the sale proceeds to pay your creditors. After liquidation of these non-exempt assets, all remaining qualified debts are then discharged and the creditors are out of luck. Chapter 11 Bankruptcy sometimes referred to as “reorganization”, is designed for debtors in financial difficulty who may have the ability to pay their existing debts in part. Chapter 11 is available to both individuals and businesses, though is more typical for businesses. Under Chapter 11 the debtor must propose a plan that results in more payments to debtors than they would get under a liquidation. The plan must be approved by a council of creditors. Chapter 13 Bankruptcy involves the repayment of all or part of the debts of an individual with regular income. Chapter 13 is designed for individuals with regular income who desire to pay their debts in installments over a period of time. Debtors are only eligible for Chapter 13 if your debts do not exceed certain dollar amounts set forth in the Bankruptcy Code. Under Chapter 13, the debtor must file with the Bankruptcy Court a plan to repay their creditors all or part of the money they owe, using future earnings. The period allowed by the court to repay the debts may be three (3) to five (5) years. The court must approve the plan before it can take effect. Our next post will address the following step for identifying what you should do with this notice after you have identified the type of bankruptcy: Are you actually a creditor, or did you receive the Notice for some other reason?
Source: blogspot.com
Learn the implications of bankruptcy and ways to avoid it
Reorganization bankruptcies are also known as chapter 13 bankruptcies. This is the most common type. In this case, you file a list of repayment plan with the bankruptcy court. Some debts are completely wiped out; you agree to pay a part of some debts while there are some financial obligations that cannot be eliminated even by filing for chapter 13 bankruptcy. Such obligations include alimony and child support payment, student loans, tax debts, compensation for injuries caused by you while driving in an intoxicated state and files and penalties imposed by the law like a speeding ticket. When you file for this type of bankruptcy, the court will draw up a repayment plan and your financial status will be strictly monitored to ensure that you are sticking to it. In many cases, a fixed amount is automatically deducted from your salary and deposited towards working off your debts.
Source: commercial-collectionagency.com
Part Seven : Banking and Finance Law Report
Chapter 7, so named because it’s the 700 series of the Bankruptcy Code, is liquidation. Individuals and companies can file for Chapter 7 bankruptcy. For an individual, most assets will be sold or returned to the creditor. An asset might be returned to the creditor that has the first lien on it if there is no equity in the asset, for example if real estate is worth $500,000 but the mortgage on it is $750,000. In contrast, a debtor may chose to affirm certain debts if they want to retain the corresponding asset. For a business, Chapter 7 liquidation means the business is closed or will be closed, and will be sold off in whole or in parts. A trustee is appointed by the court to oversee the sale of the debtor’s assets (note that the debtor is not in charge, as in an 11); it’s also possible that the effect of a Chapter 7 for an individual (not a business) is a discharge from their debts. If an unsecured creditor receives a 10% distribution through a Chapter 7, the remaining 90% is discharged, meaning that the creditor cannot come back after bankruptcy and try to collect the 90% balance from the debtor. That creditor may face a contempt of court charge. There are specific sections in Chapter 7 for stockbroker, commodity broker and clearing bank liquidations.
Source: bankingandfinancelawreport.com
Five Most Common Types of Bankruptcy
A Chapter 13 bankruptcy can be used by a company or an individual to completely restructure their debts and repay past due accounts. This type of filing allows the individual to hold on to personal assets while paying on debts. A Chapter 13 bankruptcy can also be used for debtors who do not qualify under the means test for a Chapter 7 bankruptcy filing. Chapter 13 filing is similar to a debt repayment plan and allows for a specific period of time for which the repayment must occur in full.
Source: freedebtconsolidation.net
Things to Consider Before Filing for Bankruptcy
Filing for bankruptcy is a huge decision, that will have an impact on your life for years to come. This impact can be good, and it can also be bad. For most people, it is a huge relief with some negative side effects. But no matter what your situation, below are a list of things you need to consider before you file for bankruptcy. (1) Whether you are eligible. It may not even occur to you, but there some limitations on who can file for different types of bankruptcy. And it may turn out that you don’t want to file the type of bankruptcy you are eligible to file for. (2) The effect a bankruptcy will have on your spouse or co-signor. This is a big one, because the type of bankruptcy you file can make a huge difference on the impact bankruptcy has on your spouse or co-signor. Do you have a co-signor, and are you married? Would you consider filing jointly? Who has most of the debt between the two of you? (3) The kinds of debt you have. If your debt is mostly secured, that can make a huge impact on whether Chapter 7 bankruptcy is much assistance to you. (4) Why you are in financial difficulties. This is something many people do not consider before they file. Are you having trouble making ends meet because of an unexpected illness or sudden divorce? Or is it more of a lifestyle issue and habit problem? If the issue is something ongoing, you may consider changing habits instead of or along with a bankruptcy filing. If you don’t, you could find yourself in need of bankruptcy help again sooner than you can get it. (5) Whether you need/want your car and home? And on the flip side, are you willing to give these up, or get a cheaper home or car? These are personal choices everyone needs to consider before filing for bankruptcy. If you know what you are willing to do, you can ask your bankruptcy attorney about the options available for you. Before you file for bankruptcy or make any huge decisions, talk to a bankruptcy attorney. For instance, if you decide your car is too expensive but will need a car, consider talking to an attorney before you buy a cheaper car. If you don’t, you may have fewer options in bankruptcy. The best way to enter a bankruptcy is with the right information and a great plan, so make sure you have these two things before you file.
Source: trezzalaw.com
Does All Unsecured Debt Qualify for Discharge in Chapter 7 Bankruptcy?
There are unsecured debts that are considered non-dischargeable in Chapter 7 bankruptcy; meaning they cannot be wipe out or eliminated. Non-dischargeable debt in Chapter 7 includes back child support, alimony or spousal support and student loan debt. Student loan debt is often difficult to discharge under specific circumstances. Child support and alimony are considered priority debts. Filing bankruptcy may help you discharge other unsecured debt in order for you to make support payments easier.
Source: allmandlaw.com
Orlando Bankruptcy Attorneys Eric Lanigan and Roddy Lanigan orlando
Eric Lanigan and Roddy Lanigan of Lanigan & Lanigan, P.L., are lawyers in Winter Park, Florida, who provide legal representation to clients in Central Florida regarding bankruptcy, business and civil litigation, criminal law, foreclosure, immigration, mortgage workouts, security and investment losses to clients in Florida including Altamonte Springs, Boca Raton, Cape Canaveral, Clearwater, Cocoa Beach, Daytona Beach, Deland, Deltona, Fort Lauderdale, Fort Meyers, Gainesville, Heathrow, Jacksonville, Jupiter, Kissimmee, Lake Mary, Maitland, Melbourne, Miami, Mount Dora, Naples, New Smyrna Beach, Ocala, Orlando, Palm Beach, Sanford, St. Petersburg, Tampa, The Villages, Vero Beach, Windermere, Winter Park, Winter Springs. Eric Lanigan and Roddy Lanigan practice law in Brevard County, Flagler County, Lake County, Marion County, Orange County, Osceola County, Polk County, Seminole County, Sumter County and Volusia County.
Source: laniganpl.com
How to Decide Between Different Types of Bankruptcy Protection in MN
Contact an Experienced Minnesota Bankruptcy Attorney to Learn More If you are in debt, see no way out, and are suffering from the stress of your financial situation, it’s important to contact a Minnesota debt relief lawyer as soon as possible. Not only will a Minneapolis bankruptcy lawyer be able to help you understand the differences between Chapter 7 and 13, but a lawyer may also be able to suggest other options that may work for your situation.
Source: barrylawblog.com
What are the Different Types of Bankruptcy?
Filing for bankruptcy is a tricky process. There are a lot of different ways to get to bankruptcy, but there is only one way to file for it, depending on your situation. When you are faced with the decision to file for bankruptcy, you will have to know a thing or two about the process before you will be able to get the job done. First of all, getting in touch with a bankruptcy attorney North Carolina will help you achieve the goals that you are trying to get by filing for bankruptcy in the first place by allowing a professional to review your case with you. In order to keep the process of filing for bankruptcy clean and quick, there are very specific things that you have to do in order to file for bankruptcy. Depending on your situation, there are a few different types of bankruptcy that you may file for.
Source: azbizlaw.com
Figure Out Bankruptcy Thoroughly
Chapter 7 bankruptcy can be illustrated because a liquidation procedure. A chosen total of assets is exempt, still the remainder of your assets would be handed over to the bankruptcy trustee to be available plus distributed amidst the lenders. There are various debts that can not be discharged, still you are released of every dischargeable debt inside a not several months past processing for bankruptcy. This has a hot start plus is a big relief for people thus profoundly burdened with debt that they cannot manage any longer.
Source: your-search.org