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In chapter 13 bankruptcy do you have to pay your unsecured creditors 100 percent?
Wiki User
∙ 14y ago
NO. Bankruptcy proceedings are used because you are not capable of paying 100% of your debts (otherwise your bankruptcy claim will be rejected by the court), and unsecured debts have greater chance of a lower amount of directed settlement from the bankruptcy trustee's work than secured debts (or certain excepted unsecured debts). Note that there is an excellent perspective book both about Chapter 7 and Chapter 13 bankruptcy: "The New Bankruptcy, will it work for You?" 3rd edition (published in 2009 by Nolo), by Stephen Elias (a bankruptcy attorney). In the public library system for Colorado Springs, I found it at 346.078 E42N (Dewey decimal system).
Wiki User
∙ 14y ago
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What are th steps to filing chapter 11?
In a Chapter 7 bankruptcy, the income of the person filing will be subject to a two-part test. First, your income will be calculated with exemptions such as rent and food to determine whether you can afford to pay 25 percent of your unsecured debt such as your credit card bills. Second, your income will be compared to your state's median (middle) income. You won't be allowed to file for Chapter 7 if your income is above your state's median income and you can afford to pay 25 percent of your unsecured debt. Even if your income is below the state's median income and you can pay 25 percent of your unsecured debt, the court may still deny your Chapter 7 filing. There will be very few exceptions to this test, no matter how sympathetic your case is. If you pass the tests then the actual process of filing for bankruptcy will involve filing a two-page bankruptcy petition in which you identify your assets/property/debts etc. You will also meet with a trustee of the bankruptcy court who will go through your papers and conduct a creditors meeting. The process will take about 4-6 months.
What were the chapter 7 bankruptcy laws in 2001?
Bankruptcy laws changed dramatically in 2005 and make it considerably harder for people to file chapter 7 bankruptcy, those people who do not qualify for chapter 7 are left with the option of chapter 7. Some of the major changes with chapter 7 are:In a Chapter 7 bankruptcy, the income of the person filing will be subject to a two-part test. First, your income will be calculated with exemptions such as rent and food to determine whether you can afford to pay 25 percent of your unsecured debt such as your credit card bills. Second, your income will be compared to your state's median (middle) income.You won't be allowed to file for Chapter 7 if your income is above your state's median income and you can afford to pay 25 percent of your unsecured debt. Even if your income is below the state's median income and you can pay 25 percent of your unsecured debt, the court may still deny your Chapter 7 filing. There will be very few exceptions to this test, no matter how sympathetic your case is.
If a chapter 13 bankruptcy has not been discharged can a creditor be added?
The bankruptcy is not discharged, the debts are. A creditor can be added if the plan is not too far along or if you have the excess income to pay whatever the creditors are being paid (percent of debt) for the balance of the plan. If it is a post-filing debt, it cannot be added.
Can I move if I have 16 percent intertest in a house that I inheritate while filing chapter 7?
Filing a Chapter 7 does not prevent you from moving. You have to notify all the creditors, the trustee and the court of the change of address, by motion (see local rules for any specifics or consult a local bankruptcy lawyer).The inheritance will have to be added to the assets listed in Schedule A, with the value of the 16 percent equity, again by motion with copies to all the above.I recommend using a lawyer to do it right.
Where can one get free bankruptcy counseling in the US?
American Debt Enders offers free consultation for filing chapter seven bankruptcy. Their phone number is listed on their web page. There are no one hundred percent free bankruptcy services just free consultations. There are filing fee involved to file for bankruptcy.
How has the bankruptcy law changed in the last year?
Major changes were made to bakruptcy law in 2005, making it harder to file for chapter 7 and deferring more people to chapter 13.In a Chapter 13 bankruptcy, the court will apply IRS living standards to determine what is reasonable for expenses such as rent and food, and the rate you need to repay your debts. The IRS standards are more strict than the courts have been in the past.In a Chapter 7 bankruptcy, the income of the person filing will be subject to a two-part test. First, your income will be calculated with exemptions such as rent and food to determine whether you can afford to pay 25 percent of your unsecured debt such as your credit card bills. Second, your income will be compared to your state's median (middle) income.You won't be allowed to file for Chapter 7 if your income is above your state's median income and you can afford to pay 25 percent of your unsecured debt. Even if your income is below the state's median income and you can pay 25 percent of your unsecured debt, the court may still deny your Chapter 7 filing. There will be very few exceptions to this test, no matter how sympathetic your case is.
How often can you file for bankruptcy?
Currently, basically as many times as you can stay within these guidelines: Under the bankruptcy laws effective on October 17, 2005, Chapter 7 cannot be filed unless the debtor was discharged from the previous Chapter 7 or bankruptcy more than eight years ago. The debtor cannot file a Chapter 13 unless: (1) the debtor received a discharge under Chapter 7, 11 or 12 more than four years ago; or (2) the debtor received a discharge under Chapter 13 more than two years ago.
When in a chapter 13 bankruptcy for more than 4 years and receiving money for a 100 percent disability that happened after filing bankruptcy can bankruptcy take the settlement?
"Bankruptcy" does not take anything. The Chapter 13 Trustee is the one who "takes" anything there is to be taken. And, no, your settlement - if you mean a retroactive check for disability (SSDI) - is not available to the trustee. If you are talking about a settlement of a lawsuit, probably not, unless the cause of action existed at the time you filed the c. 13 and did not exempt any possible award. Talk to your bankruptcy lawyer.
How to File Bankruptcy?
The U.S. Congress established federal bankruptcy laws so that honest but unfortunate debtors could make a fresh start. While any bankruptcy filing must be made in federal court, your local judicial district administration and bankruptcy judge will process your filing.Step One: Filing DecisionsDetermine what type of bankruptcy filing you should make. The six standard types of filings are: Chapter 7-- Liquidation; Chapter 13--Adjustment of Debts for individual wage earners; Chapter 11 Reorganization; Chapter 12 Adjustment of Debts for farmers and fishermen; Chapter 9 Adjustment of Debts for municipal entities; and Chapter 15 Ancillary and cross-border insolvency. Chapter 7 is one of the most common types of bankruptcy filed by private citizens.Step Two: Filling Out the FormsObtain the required forms from your bankruptcy lawyer, or if you are representing yourself, download the correct forms for your judicial district online at http://www.uscourts.gov/bkforms/index.html. Included in the paperwork is a petition for the discharge of your debts, a schedule of your assets and liabilities, a financial statement, and a list of your existing, unexpired leases. Also, you must include copies of your tax returns and pay stubs, a certificate of credit counseling, and a debt repayment plan.Step Three: File for BankruptcyFile your completed forms with the federal court in your jurisdiction, or if you are represented, have your lawyer do the filing. Unless you have already arranged to pay the court fees in installments, you must submit the case filing fee of $245, a $39 administrative fee, and a $15 trustee fee upon submitting your paperwork. These fees are accurate as of June 2011, but consult your lawyer or court clerk for verification.Filing a Chapter 7 bankruptcy petition automatically stops debt collectors from trying to collect.Step Four: Attend the Creditors MeetingPresent yourself at the official meeting of creditors. After a period ranging from 21 to 40 days, your trustee will contact you or your lawyer with the date and time. You must answer any questions under oath, and provide any additional records your trustee requests.Step Five: Wait for the Final DischargeWait for the bankruptcy to become finalized. Most bankruptcy courts take approximately 60 to 90 days after the initial filing to complete a Chapter 7 bankruptcy filing. According to the federal courts, 99 percent of Chapter 7 filings are granted full discharge of debts.
If your chapter 7 bankruptcy was discharged six weeks ago what are your options for a refinance?
You can quite possibly refinance up to 80 percent of the value of your home and get some cashout with a decent rate.
Do you have to pay back creditors after you file bankruptcy?
There are several different types, or chapters, of BK. Probably the main aspect of each is that the court protects you from collection actions of your creditors while a process to resolve your financial problems is decided. The court normally appoints a trustee to oversee your affairs, and you are restricted from entering or changing financial agreements without their agreeing. Some require a payment plan be established where for some period of years, you pay a percent of your earnings to the trustee for him to use to pay your creditors. You may also have to attend financial counseling sessions and such. If, after complying with the terms of the arrangement there is still debt unpaid, the court may dismiss it. Of course, certain types of debts are not able to be discharged (like child support), and ones that have a secured interest, like a mortgage on a house, have the ability to have the asset sold to pay the debt too. The important thing is the BK involves all your debts and all your assets...your assets are used to pay the debts...you are not just relieved of the debt...and again, secured debts get first call on the receipts from those specific assets. The purpose of BK is to eventally give you a "fresh start" without debts....that isn't to say a head start...no debts but the assets they provided.
Does a shareholder in an S Corpration with 75 percent of the shares who is also the president of the S Corporation need consent of the other 25 percent to declare bankruptcy in the state of IL?
A shareholder can declare personal bankruptcy whenever he wants. If the S-corp is declaring bankruptcy, only a simple majority is required (51%) before action can be taken. Do you need consent of the other shareholders? That depends of what your articles of incorporation say.
