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Filing for Bankruptcy Debt Overview
Gaining a better understanding of bankruptcy will help individuals make a more informed decision in regard to their debt relief options and will assist them in determining whether bankruptcy will be right for them.
If you need legal assistance to file for Bankruptcy, it is important that you contact a bankruptcy attorney in your local area to discuss your case.
Chapter 7 is a proceeding for bankruptcy liquidation. The one filing for Chapter 7 turns all assets to their trustee lawyer who then converts it to money this way the trustee can go ahead and pay the creditors. This way the debtor gets all their debts taken care of, and released from any personal liability to who he or she owes, and that is why Chapter 7 is also known as “straight bankruptcy”.
Chapter 9 is a resolution of municipal debts passed by congress for federal mechanism. Chapter 9 is very similar to chapter 11 but it’s available to counties, cities, villages, towns, schools.
Chapter 11 is basically what businesses, enterprises file for this way, and they can continue to run their business and repaying creditors through a reorganization of court-approval.
Chapter 12 is a debt relief given to family farmers with regular Annual Income to pay the creditors within a period of the time allowed by the courts. Usually, the courts give 2 – 5 years.
Chapter 13 is a bankruptcy law that provides debt relief for individuals. Chapter 13 is very similar to chapter 7 except Chapter 13 gives assets to your trustee but you can keep property such as house. While making payment through a 3 – 5 year term. At a confirmation hearing the court basically approves or disapproves the confirmation requirements given by the Bankruptcy Trustee.
Creditor Harassment is when the debt collector is aggressively and is pressuring you to pay a debt. It involves when the creditors give you wrong information, excessive number of telephone calls or even home visits, threats you in a violence ways.
Multiple filings are not in and of themselves criminal, but they may violate provisions of bankruptcy law. In the U.S., bankruptcy fraud statutes are particularly focused on the mental state of particular actions. Bankruptcy fraud should be distinguished from strategic bankruptcy, which is not a criminal act, but may work against the filer. All assets must be disclosed in bankruptcy schedules whether or not the debtor believes the asset has a net value. This is because once a bankruptcy petition is filed, it is for the creditors, not the debtor to decide whether a particular asset has value.
The future ramifications of omitting assets from schedules can be quite serious for the offending debtor. A closed bankruptcy may be reopened by motion of a creditor or the U.S. trustee if a debtor attempts to later assert ownership of such an "unscheduled asset" after being discharged of all debt in the bankruptcy. The trustee may then seize the asset and liquidate it for the benefit of the (formerly discharged) creditors. Whether or not a concealment of such an asset should also be considered for prosecution as fraud and/or perjury would then be at the discretion of the judge and/or U.S. Trustee.
Can't pay your bills? Your income is less than your expenses? If so, find a local bankruptcy attorney in your area for a free initial consultation.
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