Chapter 13 Vs Chapter 7 Bankruptcy

If you have had financial problems recently, you may be considering bankruptcy as a way to resolve the situation. In terms of personal bankruptcy there are two options open to you. These are chapter 7 and chapter 13 bankruptcy. This article will discuss the merits of each and contrast chapter 13 vs chapter 7 bankruptcy. Chapter 7 bankruptcy is also known as a liquidation bankruptcy. Most people seek this option. When a person files for bankruptcy under Chapter 7, certain assets are liquidated and the money obtained is paid to the various creditors. The courts decide on an equitable agreement in terms of what is paid to creditors.

Bankruptcy Abuse - What Constitutes Abuse?

Having a lot of unsecured debt might be one of the reasons that a debtor chooses to file for chapter 7 bankruptcy. The debtor can get discharged from all of his unsecured debts by filing for chapter 7 bankruptcy. Debt from credit cards, hospital bills, lawsuits, and other debt are terminated, leaving the debtor with a fresh start. However, this option is mostly available to those that don't have a lot of assets that can be distributed to the creditors. If the debtor has more than 15, 000 of equity in his house, or 30, 000 of equity in case of a married couple, then the house can be sold and the equity that exceeds the exempt amount, 15, 000 or 30, 000, gets distributed among creditors.

Chapter 7 Bankruptcy Court Date - Who, What, When Where

Upon first arriving for their 341 meetings of creditors, debtors usually are looking for some guidance. Depending on the location a debtor will either be required to check in (such is the case in Lake County) or simply take a seat in the designated waiting area (such is the case in Cook County). In both instances, there is at least one sheet of paper a debtor must review before entering the meeting with their respective Trustee. Additionally, a debtor shall not enter the Trustee's room until their name is called. Most debtors are hesitant to ask questions that may be important to their case.

Bankruptcy - Timeframe From Start to Finish

Chapter 7 bankruptcy is a process whereby a debtor eliminates the majority of unsecured debt by filing a petition and appearing at a meeting of creditors. The entire process takes approximately 120 days and could require as little as one court appearance. The typical time-frame is as follows: 1) Filing of the petition with the clerk of the U.S. bankruptcy clerk. A notice is sent to all creditors, the debtor, the debtor's attorney and the panel trustee. 2) The 341 meeting of creditors is held approximately four to six weeks after the date of filing. 3) The debtor waits an additional 60 to 90 days until receiving a discharge order.

Filing For Bankruptcy

Filing for bankruptcy can be a very scary thing. There are a lot of things to think about and you should really consider the consequences of what filing for bankruptcy will mean for you before you do it. A bankruptcy lawyer will guide you through the process, but they want to to file because that is how they make money. Here are some things to consider before you file for bankruptcy. First, how much money do you make each year compared to the size of your debts? If your debts are less than half of what you make in a year, then you should not file for bankruptcy. Sure you might have to cut back on some of the extras and it might take you 3 or 4 years to get completely out of debt, but you will have much better credit and you will not have to suffer the effects of a bankruptcy that will be on your credit for 7 years.

Can Debt Problems Be Solved by Bankruptcy?

Does your debt situation continue to go from bad to worse? Is bankruptcy the only option that you have left to consider? Then you will need to fully explore all the available options to you before you go down this path as there is no turning back. Your credit will never be the same again and you could find great difficulty obtaining future credit requests. The expert advice of financial advisers is that bankruptcy should not be used unless it is absolutely necessary. If any lawyers are dealing with occurrences like these then they also agree that it is true. If you have a huge amount of high interest credit card debt and can't make your mortgage payments or if your car is about to be repossessed or the electricity is going to be disconnected, and you can't pay any of these bills, you may want to consider bankruptcy.

Secured Creditors Unsecured Creditors - What s the Difference?

A "secured creditor" is one that has a lien on property such as a home or car. A lien is an interest in property that a creditor can use to satisfy a debt. Liens can be voluntary (mortgage or auto loan) or involuntary (a lien on property resulting from unpaid taxes or a judgment). A secured creditor stands in a superior position to the debtor. If the debtor does not make timely payments, the creditor can foreclose on their interest and recover the property. An "unsecured creditor" is a creditor who has no interest in any particular property of the debtor. Unsecured creditors are paid either voluntary by debtors or they must receive a judgment through the court in order to collect on a debt via garnishment or seizure.

FAQ s on Bankruptcy Filing

Filing bankruptcy is something that has to be taken seriously. If you miss a part of the process or fail to file certain paperwork then your bankruptcy can be denied. You have to be sure that you understand everything about bankruptcy filing. Here are some common questions that help you to undersatnd more about the process. What is the first step? The first thing you should do when you decide to file bankruptcy is to decide what type you want to file. The two basic choices are Chapter 7 or Chapter 13. The difference between the two is how your debts are cleared. In a Chapter 7 your debts are written off and in Chapter 13 you repay the debts through a court instated repayment plan.

Filing and IRS Bankruptcy Procedures

Bankruptcy is a negative word, and with new changes in the law, it is now also a mind-boggling word. Sadly, it is the only resort for a lot of people. Getting to the bottom of what bankruptcy is, what the filing needs and guidelines are, and the nitty-gritty of the process is imperative if you are convinced this is your last alternative to liberate yourself from financial problems. To add, it is a brilliant move to consult a Tampa tax lawyer if you wish to resort with bankruptcy filings. Bankruptcy is a situation when a person or business is no longer able to settle financial obligations.

Filing For Bankruptcy Under Chapter 7

Chapter 7 forms part of the United States Bankruptcy code. The United States Bankruptcy code is made up of 11 parts and is sometimes known as liquidation bankruptcy. The whole process of Chapter 7 bankruptcy takes four to six months and costs an average of about $299 from filing and administration fees. By filing for Chapter 7 you are placing your property and debts into the hands of a bankruptcy court; however in order to be considered to apply for Chapter 7 you must undergo a 'means test' in order to qualify for Chapter 7 Bankruptcy. This means test is how the Internal Revenue Service (IRS) determine who can and who cannot file for Chapter 7.