Who qualifies for a Chapter 7 bankruptcy?

Answer 1

Generally it is reserved for business/corporations, unless fairly special circumstances and conditions are met....and even then, there really isn't any reason to go C-11 as C=13 which is easily done for individuals effectively does the same thing and fits the bill better. BK is Federal Law. The state makes very little difference really. From another independent source defining C-11 Chapter 11 is a chapter of the United States Bankruptcy Code, which permits reorganization under the bankruptcy laws of the United States. Chapter 11 bankruptcy is available to any business, whether organized as a corporation or sole proprietorship, and to individuals, although it is most prominently used by corporate entities. In contrast, Chapter 7 governs the process of a liquidation bankruptcy, while Chapter 13 provides a reorganization process for the majority of private individuals with unsecured debts of less than $336,900.00 and secured debts of less than $1,010,650.00 as of April 1, 2007. And yet, the below from the official US Courts website introducing the laws involving C-11, with link following. Better tell them they don't know what they are talking about too. A case filed under chapter 11 of the United States Bankruptcy Code is frequently referred to as a "reorganization" bankruptcy. An individual cannot file under chapter 11 or any other chapter if, during the preceding 180 days, a prior bankruptcy petition was dismissed due to the debtor's willful failure to appear before the court or comply with orders of the court, or was voluntarily dismissed after creditors sought relief from the bankruptcy court to recover property upon which they hold liens. 11 U.S.C. §§ 109(g), 362(d)-(e). In addition, no individual may be a debtor under chapter 11 or any chapter of the Bankruptcy Code unless he or she has, within 180 days before filing, received credit counseling from an approved credit counseling agency either in an individual or group briefing. 11 U.S.C. §§ 109, 111. There are exceptions in emergency situations or where the U.S. trustee (or bankruptcy administrator) has determined that there are insufficient approved agencies to provide the required counseling. If a debt management plan is developed during required credit counseling, it must be filed with the court. http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter11.html

Answer 2

The debtor's income who was examined under a formula which exempts certain necessary expenses, such as food and rent, to determine if the debtor will be able to repay 25% of his or her "nonpriority" unsecured debt.

Answer 3

You can qualify to file for bankruptcy if you owe a substantial amount of money to your creditors and/or car loan and mortgage companies. It is not worth filing bankruptcy for small debt as bankruptcies range from 900 dollars to a couple thousand dollars.

Answer 4

The answer to this depends on the type of bankruptcy you are filing. For chapter 7 Bankruptcy, the process takes about four to six months, with filing and administrative fees, and one trip to the courthouse. Other things that you must do include: Filling out a two-page petition and other forms (describing your property, income, monthly living expenses, debts, exempt property, property owned and money spent in the previous 2 years, and property given away in the previous 2 years and Filing the petition/forms with the bankruptcy court in your area.

Answer 5

Qualifications for bankruptcy differ greatly depending on which chapter of bankruptcy you are filing under. There are different chapters for various company or corporation bankruptcies as well as one for individuals. The biggest factor is usually the monetary amount of the total debts. Other factors include income level and the type of debt. The article below lists specific amounts per type of bankruptcy.

Answer 6

In general, an individual files chapter 7 bankruptcy if they have no income and inadequate assets to sustain payments on their debt. An excellent book to learn the overall details of deciding to file chapter 7 or chapter 13 bankruptcy is: "The New Bankruptcy, will it work for You?" 3rd edition, by Stephen Elias (published by Nolo in 2009). I found it in the Colorado Springs public library under 346.078 E42N (Dewey decimal).

Answer 7

First, you have to accompany your petition with a check for the filing fee. If you do not have the money for it in full, you can pay in installments (. Second, you have to provide a list of all the people you owe money to (Form A), and a separate form (Form 4)to list the creditors that hold the 20 biggest assets at the moment. You need to provide proof of your Social Security number, of any credit counseling program attended, or any re-payment plan, if it applies. There should be a "contract" document stating that the preparer of the document will obtain compensation, and you will also do the same for any debtors that you plan to repay.Additionally, you will have to provide records of your credit, your pay stubs, and all other spending that you have at the moment. All notices for bankruptcy should be sent to the debtors and your attorney must also obtain a certification that he will be paid for his services.