Chapter 7 Bankruptcy

So you have finally made the decision regarding filing for bankruptcy, and now you are ready to go. Whether you have come to this point due to a terrible financial situation, have had a personaltical blow on your finances, or have simply exhausted all other options, the following few words will provide you with an overview of the options available to most of us in dealing with financial difficulties during the bankruptcy process. In no way am I an attorney and not a bankruptcy attorney, but these are simply my experiences in the law and I would like to give you my insights on the subject. Additionally, this is not legal advice and I would agree it would not be wise to rely on any information you hear from an attorney or friends. I can assure you that this is just a preliminary update that should help you make a decision regarding your own situation.

Chapter 7

Any chapter 7 bankruptcy is said to be “liquidation” and has a concept of what properties you still have and what is non-exempt due to the bankruptcy code. As per the code, while filing for a chapter 7 bankruptcy, you can exempted some of your property from liquidation, if they are valued higher then or equal to what you owe on the mortgage payments, vehicles, and work-related tools and materials. This usually depends on the type of bankruptcy you complete. If you have a business and have been running the business for at least 4 years, you will most likely have to offer your company’s property to liquidate. But, there are certain property exemptions that can help with keeping your business running.

Chapter 9

If you have hit a rough spot and your finances are awful and you are hopelessly throwing your life away, it might be time to go back to the drawing board and rework your plan. Chapter 9 bankruptcy is mostly to do with municipalities. Under this option, the municipality has the option of retaking control of certain assets or restructure them. This might relate to thecharging and taxationof the cities/counties within the incorporated city. You will need an attorney who specializes in this field of law.

Chapter 11

As per roy alame Unless your business is closely tied to the operation of a federal structure, then visit the nearest federal bankruptcy Law Center. On the other hand, if you are a sole proprietor locating at home, File for bankruptcy at your local bankruptcy court.

Chapter 12

More then family farmers, bankruptcy filers in the small business sector are eligible to file for a true Chapter 12 bankruptcy. This is more then like a normal Chapter 12. A true Chapter 12 is organized to provide family farmers with an opportunity to protect their assets and reorganize their finances while at the same time protecting their businesses.

Chapter 13

With this option, you and your lawyer will create a feasible repayment plan to guarantee that the debt will not go into collections or be subject to wage garnishment. Most Chapter 13’s require payments to the trustee assigned to your case every month. During the 3 to 5 year payment plan, interest will be frozen on your unsecured debt.

Chapter 15

With this option, nations, corporations or partnerships may be liquidated and the resulting funds distributed to creditors according to a specified ranking system and secured creditors to the unsecured debt.

Chapter 11

If your company is about to be dissolved and you need the money now, this could be the best solution. Chapter 11–reorganization bankruptcy– allows you to keep all of your assets, work out a reorganized plan within the court system, and then Profit from the newwon organization.Surprisingly, changing the ‘how things work’ and fairy tale would be the best option. Always bear in mind that the US court system is run by men and women for men and women!