Top 7 things you should know bankruptcy

Top 7 things you should know bankruptcy

Top 7 things you should know bankruptcy

Top 7 things you should know bankruptcy

Top 7 things you should know bankruptcy

Top 7 things you should know bankruptcy

1.      There are 6 types of Bankruptcy (Chapter 7,9,11,12,13, and 15)

Top 7 things you should know bankruptcy

a.       Chapter 7.  Sometimes called simply “Liquidation”. A court ordered person (trustee) takes control over all that you own (your assets).  Trustee then converts them into cash. With the cash, Trustee pays out your creditors — subject to certain exemptions.  Chapter 7 is best when you have little to no property. Debtors who have qualified under the ‘means test’ and completed a required pre-filing session may file for Chapter 7 bankruptcy protection. All pre filing counselling sessions must be completed with a authorized credit counselor.

b.      Chapter 9.  Sometimes called “adjustment to debt of municipalities”.  These typically only applies to cities and towns.

c.       Chapter 11. Sometimes called “Reorganization”.  Chapter 11 applies to commercial enterprises or businesses that intend to continue operation while paying back creditors through a court agreed plan. The debtor can terminate difficult contracts in some cases.

d.      Chapter 12 (called “adjustment for fisherman or farmers”) – the name is self-explanatory.

e.       Chapter 13 (called “adjustment of debts of an individual with regular income”) – it allows debtor to keep a assets (such as car or home) while allowing the debtor to propose a plan of repaying the debt over 3-5 years.  So, it usually applies when you have significant equity in a home or other property and you want to keep it. 

When contemplating bankruptcy, please speak to an attorney to make sure that it is in your best legal interest to do so. It can be difficult at imes, hard to understand forms, and a challenging process, having an attorney by your side can lessen the burden of doing so. This law office can help at (443)413-5756

 Top 7 things you should know bankruptcy

2.      Bankruptcy Court Fee for Chapter 7 (Excluding Attorneys Cost )

a.       Usually, $306.00. Top 7 things you should know bankruptcy

3.      If you have a judgment against you (post-litigation and trial), will Bankruptcy relieve you from debt?

a.       In most instances, yes. There are some debt that Bankruptcy does not relieve you of, such as secured debt and student loans.  But most of the times, when creditors such as credit card companies obtain a judgment against you or garnish pay checks or bank accounts, Bankruptcy can stop this.

Top 7 things you should know bankruptcy

4.      Can you keep your primary residence home in a Chapter 7 filing?

a.       It depends. If the home falls within an exemption or if there is no equity in the home, then it is possible for you to keep your home in a ‘full discharge of your debt’ (Chapter 7) bankruptcy. Please remember that your home will still be subject to the mortgage as Bankruptcy, generally, does not relieve you from paying mortgage. Top 7 things you should know bankruptcy

5.      Where do you file Bankruptcy?Top 7 things you should know about bankruptcy

a.       Bankruptcy is filed in United States Federal Bankruptcy Courts. The website for these courts are www.USCOURTS.gov

6.      What can Bankruptcy do for you?

a.       Most debt incurred up until the date and time you file bankruptcy can get discharged or erased in certain Bankruptcy filings.  Any debt incurred after bankruptcy is free-game for creditors to begin harassing you again. Top 7 things you should know bankruptcy Top 7 things you should know bankruptcy

Per the website “A bankruptcy discharge releases the debtor from personal liability for certain specified types of debts. In other words, the debtor is no longer legally required to pay any debts that are discharged.” “Filing a petition under chapter 7 “automatically stays” (stops) most collection actions against the debtor or the debtor’s property. 11 U.S.C. § 362. But filing the petition does not stay certain types of actions listed under 11 U.S.C. § 362(b), and the stay may be effective only for a short time in some situations. The stay arises by operation of law and requires no judicial action. As long as the stay is in effect, creditors generally may not initiate or continue lawsuits, wage garnishments, or even telephone calls demanding payments. The bankruptcy clerk gives notice of the bankruptcy case to all creditors whose names and addresses are provided by the debtor.”  Top 7 things you should know bankruptcy

7.      It is a crime for a creditor to harass you when you have filed for Bankruptcy.

 *Disclaimer: None of this information on this page should be used as legal advice or relied upon.  Please consult your attorney regarding your specific case. This blog is general information that may be outdated over a period of time.

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