What are the different types of bankruptcy that individuals can file?
Whether you're thinking of filing for bankruptcy or you already have filed for bankruptcy, there are some things you should know about the filing process. Listed below are some of the types of filings that you can expect to encounter in your bankruptcy case.
Chapter 7
Having a Chapter 7 bankruptcy filing can give you a fresh start to your financial life. However, it is important to understand that not all debts are discharged in this type of bankruptcy. You may be able to retain certain assets by choosing a debt reaffirmation option.
There are three different ways to file for bankruptcy: as an individual, as a couple, or as a limited liability company. All three involve filing a petition and attending a meeting with creditors.
The first step is to collect all your financial records. This will include income, expenses, and your current debts. You will need to fill out a petition with basic information about yourself, your assets, and your liabilities. The petition is filed with the court and your trustee will handle your case.
Chapter 13
Whether you want to keep your home or are looking for a new way to pay back debts, Chapter 13 bankruptcy filings are a viable option. This type of bankruptcy filing allows you to spread out debt over a longer period of time. However, it can take three to four months to complete, and the effects of it on your credit report can last for years.
To get the most out of a Chapter 13 bankruptcy filing, you'll need to find a good bankruptcy attorney to help you navigate the process. A credit counselor can also help you assess your options.
There are two types of Chapter 13 filings. One is a "wage earner's plan" which requires you to pay back creditors over a three to five year period. The other is a more general "Chapter 7" filing, which allows you to completely discharge most of your debt.
Chapter 11
Generally, chapter 11 bankruptcy filings are made by corporations or large businesses that have a significant amount of debt. These businesses seek a restructuring to regain profitability and maintain operations. Those with personal debt can also seek relief in this form of bankruptcy.
To file for chapter 11 bankruptcy, the debtor must submit a disclosure statement to the court. The document includes substantial financial information and details about the debtor. It also includes the names of accountants and appraisers who will help the court make decisions.
Before filing, the debtor must prepare an income and expenditure schedule, which lists all the assets and liabilities. The debtor must also list executory contracts. The debtor must also provide a detailed description of the business and its financial condition.
Chapter 12
During the fourth quarter of 2019, Chapter 12 bankruptcy filings increased by 14%. That's more than the average increase of seven percent over the past five years. The number of filings was up by double digits in four regions. Those regions include the South, West, Southwest and Northwest.
The Family Farmer Relief Act of 2019 was introduced to offer more debt relief to farmers. The law raises the Chapter 12 debt limit to $10 million. In addition, it changed the rules of the game. The law also allows for the use of cramdowns on secured loans.
Cramdowns are a legal process in which a debtor pays the current market value of the collateral he or she owes. This can help reduce the amount owed on a secured loan, and is not limited to loans taken out during a bankruptcy filing.
Chapter 15
During a recent webinar, a panel of experts discussed the current state of Chapter 15 bankruptcy filings. The webinar, held by the New York City Bar Association's Bankruptcy & Corporate Reorganization Committee, focused on how creditors can use this new bankruptcy process to get a fair deal from a financially distressed company.
The primary goal of Chapter 15 is to make international insolvency proceedings more predictable and fair to creditors. It also allows cooperation between U.S. and foreign courts, and promotes communication between parties.
The code provides a pathway for foreign representatives to enter the United States court system, allowing them to bring full bankruptcy cases. These proceedings are generally ancillary to the debtor's main proceeding in the home country. However, the provisions of this section are not imposed on all foreign bankruptcies.
If you need a bankruptcy lawyer, please call this law firm for a free consultation
Ascent Law LLC
8833 S Redwood Rd Suite C
West Jordan UT 84088
801 676 5505