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In short, the answer is yes. But it can be anywhere between 0%-100% of your total debt. The amount you are responsible for is calculated by a "means test" given by a bankruptcy lawyer. You can find examples online to give you an idea of where you stand. Just search for "means test + your state". Good luck.
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Can a company who brought a product from a company that files for Chapter 13 not pay what it owes to the bankrupt company?
No...their BK protects THEM from paying creditors...not others from paying them! Duh. In fact, as the BK company now has the court protecting it, and helping it and it's creditors do everything possible to secure all the Cos assets (your debt is their asset) to distribute and pay the Cos creditors....it will be harder to not pay them now as they have the law, and many interested parties on their side.
What is filing bankruptcy?
Bankruptcy is a legal tool individuals and companies use when they are no longer able to repay debits. In the United States their are two sorts of personal bankruptcy. 1) Chapter 13 Bankruptcy, or reorganization Bankruptcy lets an individual work with their creditors to pay back debts without the threat of foreclosure or harassment. This lets someone do the right thing and pay people back. 2) Chapter 7 Bankruptcy is a more extreme step. During Chapter 7 one continues to make essential payments while paying nothing to other creditors. Next, all assets are liquidated and distributed to creditors.
Is an IRA protected under chapter 7 Like a 401K is protected when filing chapter 7?
all ERISA qualified retirement plans are protected from creditors in a BK.
Do you pay rent under chapter 7?
Yes. In addition to your normal expenses, such as rent, food, insurance and utilities, in a Chapter 7 bankruptcy you must continue paying all of your secured debts, which usually includes debts that are secured by a house, car or furniture. In other words, in order to keep your possessions, you must continue to pay for them. If you are surrendering the item that secures a particular debt to the trustee in order for he/she to sell the property & use the proceeds to pay creditors, then you do not need to continue to pay for that item. If you are unsure about which creditors you need to continue paying for, then please contact your attorney.
What does bankruptcy do to you?
Personal bankruptcy can do two things. 1) Chapter 13 Bankruptcy, or reorganization Bankruptcy lets an individual work with their creditors to pay back debts without the threat of foreclosure or harassment. This lets someone do the right thing and pay people back. 2) Chapter 7 Bankruptcy is a more extreme step. During Chapter 7 one continues to make essential payments while paying nothing to other creditors. Next, all assets are liquidated and distributed to creditors. Bankruptcy is the really last resort and only you know whether you go to this route. I have filed bankruptcy and it worked well because of the help from the financial advices. http://freshstartsolutions.com.au/bankruptcy/ It is really important to seek an advice before making decisions.
Is the nonfiling codebtor invited to attend the creditor meeting in a Chapter 7 case?
Codebtors must be listed in the bankruptcy, and put in the list of creditors if you want the codebtor to receive notices. No one is "invited" to the creditors' meeting, but notices are mailed to all the creditors, which/who may attend if they wish.
You have filed for chapter 7 but would like to change to chapter 13 Can you do so?
Yes, usually, but you have to provide the court with additional documentation and a plan, with notice to all creditors, along with a motion to convert..
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.
You had a house foreclosure can you buy another house after chapter 7?
I had a house for 8 years and the when my husband got sick, I was the sole person paying the bills by my self. I was on chapter 13 at first to pay the bills right by paying each pay period. But the end of the 5 years i was not caught up with the bills. So i went to chapter 7. I was out of so much money in chapter 13. But i never missed a payment. I was all ways on time. My questions is I am renting a house right now, and I pay 875.00 a month. The rental will be up in November of this year. Can I buy another house after all of this?
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.
Who can file a proof of claim in any bankruptcy proceedings?
In a chapter 7, with a no-asset notice, no claim can be filed. In a chapter 13, all creditors should file a proof of claim within the time period provided.
How much can you save while in chapter 13 bankruptcy?
In a chapter 13, a debtor keeps all his or her property. If you can save while you are in a chapter 13, there is nothing in the bankruptcy law that specifically prohibits you from doing so. There is no limit to what you can save. However, a chapter 13 requires that you repay all or a portion of what you owe creditors through a repayment plan that must be approved by the court. So if you have enough income to save a lot of money, you may not be paying enough into your plan to satisfy the court (and the judge will be influenced by the trustee and creditors as well). In addition, the amount of property (including savings accounts) that you own at the time you file chapter 13 bankutpcy will affect what you are required to repay in your repayment plan. Specifically, there is a requirement that your chapter 13 repayment plan pay creditors at least as much as they would receive if you had filed a chapter 7 liquidation instead. For example, if you already have a substantial savings account at the time you file chapter 13 of $50,000, you would have to repay your creditors over $50,000 (minus any exemption) through your repayment plan. The amount of the exemption depends on state law or the federal exemptions for cash if your state has not "opted out."
