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Yes. Each type of bankruptcy allows creditors to object to specific debts included in the plan or the manner in which the plan addresses the repayment or discharge.
In Chapter 7 Bankruptcy, creditors generally have 60 days after the first creditors meeting to object to the discharge of a specific debt. If no objections are filed, the court will issue the discharge order and the trustee will proceed to collect and sell the assets, then distribute the proceeds to the creditors under a predetermined system. If there are objections, the bankruptcy itself, less the objected debts, continues through to discharge. It may be necessary to have a trial before a judge to resolve the items that creditors objected to.
In a Chapter 13 case, creditors are given an opportunity to object to the plan for repayment. If there are no objections filed by creditors or the trustee, the plan may be confirmed as filed. After the plan is confirmed, the trustee will distribute the payments from the debtor to creditors until the
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What happens at chapter 13 creditors' meeting?
Chapter 13 bankruptcy is different than chapter 7 in that you will essentially be reorganizing your debt and coming up with a payment plan. The creditors meeting involves filing a plan with the bankruptcy court suggesting how you will repay your debt. Some debts must be repaid in full while others require only a percentage or nothing at all.
What happens if you dont pay after filing bankruptcy?
Assuming its a chapter 13 bk, if you dont make your plan payments the court will dismiss your bk- allowing creditors to resume collection efforts
How does a person file for chapter 11 bankruptcy?
To file chapter 11 bankruptcy one must propose a plan and then must find creditors to agree with this plan. Then, the person must take the plan and creditors to bankruptcy court where the judge will decide whether the plan can work or not. As long as the judge and all the creditors agree then that person can follow through with the plan and be in chapter 11 bankruptcy.
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.
If you file bankruptcy who will be notified?
All creditors are notified and you are required to attend a 341 meeting of creditors prior to your plan being approved. Most creditors, especially the unsecured ones, do not bother to attend. Those that do attend must restrict their questions to your financial situation. Many trustees are now requiring Payroll deduction of payments into the plan if filing Chapter 13, so it is possible a Payroll accountant at your business will become aware of the filing.
Are annuities protected when filing bankruptcy?
Only if they are in a qualified retirement plan, like an IRA.
What if your income increases after filing a chapter 13 bankruptcy?
Chapter 13 is more of a repayment plan than a debt wipeout. Because of that, if there is a change in your financial circumstances after filing for bankruptcy then the court needs to be aware of it.
Can the bankruptcy court confirm the debtor's plan of reorganization?
A court can confirm a plan if that plan proposes to pay secured and priority creditors in full and unsecured creditors an amount that is fair and equitable. Thus, even if creditors do not vote in favor of the plan, the court can confirm it as long as it is fair to those creditors. The reasoning is that the court knows what is best and will not allow creditors to thwart the ultimate purpose of the code which is to provide for creditors what is fair based upon the financial circumstances of the debtor
What is the importance of an individual voluntary agreement?
The importance of an individual voluntary agreement is that it protects you from bankruptcy. If 75% of the creditors agree with your plan, the remaining have to follow the plan in law.
What rights are conferred upon the party filing the plan pursuant to Bankruptcy law 1121c?
Only the right to file a plan. The party filing a plan must meet all the requirements of a plan. In 36 years of bankruptcy practice, I have never known of a case in which the plan was filed by a party other than the debtor, but if the debtor fails to file a plan within 120 days of filing the petition, a creditor or someone else could file a plan under 11 USC 1121 c.
When to file bankrupcy?
If your house is being foreclosed on, you need to file a chapter 13, with a plan for paying the secured debt arrears, including the mortgage(s) and have the income left over every month to pay the plan (and the trustee's percentage).
What does a creditors' committee do in a Chapter 11 bankruptcy?
court will appoint a creditors' committee, which generally consists of the seven largest unsecured creditors. Their function includes appearances at court hearings, participation in the plan of reorganization, and asserting possible objections
