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Does a chapter 11 bankruptcy allow you to keep your house without having to pay all other debts owed.?
Wiki User
∙ 17y ago
The lawyer knows more than your friend. I Think Your Is Right, You Need To Check This Out. It Is A Very Expensive Way To File. Time Consuming & Lawyer Fees Are High For This. Check For Another Alternative, In Resolving Your Problem. * Individuals can file a chapter 11 bankruptcy. A chapter 11 is the same as a 13 (consolidation) with the exception that there is no limit on the amount the debtor might owe. It is not true that you are allowed to retain a home but not pay other debts owed. That is only possible in a total liquidation chapter 7 BK, where the home is not in jeopardy of bankruptcy action because it is protected by the homestead exemption.
Wiki User
∙ 17y ago
Wiki User
∙ 16y agoIf you file a chapter 7 (which wipes out your debts) you can keep your house if you reaffirm (means you will continue to make your full payments on). THis can also be done on your auto. In Chapter 13, you will be paying a certain percentage towards your date, based on your income. I am not 100% sure, but I believe it works the same way as far as affirmation. You would probably still have to make your "full" housepayment. Good luck. Hope this helped. The following link may be of interest to you:
http://debtwipeout.com/chapter1.htm Just changing, maybe explaining, the above a bit more: Chap 13 for sure (and even 11 in reality)...are NOT interested in hurting you or taking things away...what it really wants to do is make sure you keep all the things you CAN AFFORD to keep. Which is also to say...if you can't afford your house...no matter how much you want it or love it....there is really no way you can keep it.
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If you incur a debt on credit card after you file chapter 13 and are still under the bankruptcy can that credit card company do anything legal to collect your debt?
Declaring bankruptcy does not allow you to go out and spend money without having to pay it back. Yes, the debt is not covered by the Chapter 13 filing, so they can do what they can to collect the new debt.
What protection does Chapter 11 Bankruptcy offer?
Chapter 11 is the bankruptcy code issued to a business who files for bankruptcy. This type of bankruptcy protects a business and will allow it to get running again. If a business fails and applies for chapter 7, they must sell everything and give the proceeds to creditors. A person on chapter 11 does not have to do this.
Can a person file for ch 7 bankruptcy even though he is still in ch 13 bankruptcy?
Yes and no. No you cannot file for two types of bankruptcy at the SAME time. But yes you can file for chapter 7 bankruptcy if you were unable to complete chapter 13, which is very common. This can be done once for any reason, without court approval. However, to switch back, approval of the bankruptcy court is required, and they will rarely allow a debtor to make multiple switches. Note that in switching from Chapter 13 to Chapter 7, much of the debtor's property is now up for grabs to be sold off to pay his or her debts. However, if the debtor cannot make the payments under a Chapter 13 bankruptcy, switching to Chapter 7 may be his or her only option.
What are the laws relating to bankruptcy in Texas?
The laws relating to bankruptcy in Texas are Chapter 7 and Chapter 13. Chapter 7 will completely relieve one of all major debt and allow for one to keep their house and one car. Chapter 13 is better if one fits into and has a steady income as it gives one the breathing room need to help one get out of debt without being completely over taken by their debt.
What requirements must be met for creditors to file an involuntary bankruptcy petition under chapter 7 of the federal bankruptcy code?
The debtor has not been paying its bona fide debts as they become due
Can i get a chapter 13 dismissed and then claim a 7?
Yes, this is actually a common thing for people to do when they cannot maintain the strict payment schedule of a chapter 13 bankruptcy. This can be done once for any reason, without court approval. However, to switch back, approval of the bankruptcy court is required, and they will rarely allow a debtor to make multiple switches. Keep in mind that these are different types of bankruptcy so some items that may not have been up for grabs to creditors with a chapter 13 are available to be sold in a chapter 7.
Can you own your own business while going through bankruptcy?
Depends on the type of bankruptcy you are filing. Generally a personal bankruptcy does not effect your business, and vise versa. However, if your business is filing bankruptcy, a Chapter 11 reorganization will allow you to stay in business.
How soon can you file a chapter 13 after you file a chapter 7 in Arizona?
Sometimes, a debtor who cannot meet the obligations of the payment plan imposed by Chapter 13 Bankruptcy may wish to switch to Chapter 7. This can be done once for any reason, without court approval. However, to switch back, approval of the bankruptcy court is required, and they will rarely allow a debtor to make multiple switches. Note that in switching from Chapter 13 to Chapter 7, much of your property is now up for grabs to be sold off to pay your debts. However, if you cannot make the payments under a Chapter 13 bankruptcy, switching to Chapter 7 may be your only option.
Can you file a chapter 7 after a chapter 13?
Believe it or not, the ploy is called a Chapter 20! A so-called "Chapter 20" bankruptcy is the process filing of a "Chapter 7" bankruptcy to discharge unsecured debts, followed by a "Chapter 13" bankruptcy to allow the debtor to catch up on mortgage payments. The 2005 Bankruptcy Reform Act attempts to limit "Chapter 20" bankruptcies by imposing limits on the filing of successive bankruptcies. Under current bankrupcy law a Chapter 13 bankruptcy may be filed only once every two years, and three years must pass after the filing of a Chapter 7 bankruptcy before a Chapter 13 filing. Some debtors attempt to circumvent this restriction by filing for Chapter 13 protection while the Chapter 7 petition is still pending. That option is not available in all courts. In a "Chapter 20" bankruptcy, debtors should be aware that missing even one mortgage payment after filing the initial "Chapter 7" petition may cost them their ability to save their home in a subsequent "Chapter 13" filing.
Can you move from chapter 13 to chapter 7?
That is a possibility for those individuals who cannot meet the obligations of Chapter 13 bankruptcy. This can be done once for any reason, without court approval. However, to switch back, approval of the bankruptcy court is required, and they will rarely allow a debtor to make multiple switches. You should familiarize yourself with the differences between the two types as certain items that were not able to be liquidated under Chapter 13 become available to creditors under Chapter 7.
Can you leave a chapter 13 bankruptcy open and refinance your current mortgage if the mortgage is not included in the chapter 13?
Here is the short answer.........No. No lender will allow this. Lenders want you to be out of Bankruptcy.This is what I do refinance people out of bankruptcy early or arrange refinancing so that my clients can avoid bankruptcy or forclosure altogether. that is what you must do in order to refi your mortgage regardless of the mortgage status with your bankruptcy plan
Bankruptcy and Debt?
If you have a mountain of debt that will force you to file for bankruptcy, there are two types of protection that you can file for with the bankruptcy courts. The first kind of bankruptcy protection is called chapter 7 bankruptcy. Under chapter 7 bankruptcy, your assets will be liquidated and the proceeds from the sales will go towards paying off your debts. Most remaining debts will then be discharged by the courts. The second kind of bankruptcy that you can file for is called chapter 13 bankruptcy. Chapter 13 bankruptcy is more closely related to debt consolidation in that your debts are reorganized and a payment plan is set up between you and your creditors. Chapter 13 bankruptcy is sometimes called a working man's bankruptcy because one of the requirements of filing for the protection is having a job with a steady income. In a chapter 13 bankruptcy filing, you and your lawyer will devise a payment repayment plan that explains to the courts how you will handle your creditors. Most payment plans allow you to make payments for a period between 30 and 60 months after the initial filing. According to current bankruptcy laws, the debtor must prove to the courts that he will be able to carry out the plan for the duration of the time period. Current chapter 13 bankruptcy laws give judges the ability to factor in your living expenses while repaying your debt. However, federal standards are in place that makes it difficult for judges to customize expenditures on a case to case basis. Chapter 13 bankruptcy can also be a punishment for those that have file for chapter 7 bankruptcy fraudulently. Many people prefer to file for chapter 7 bankruptcy because they will not have to repay most of their debts. However, not everyone qualifies for this kind of protection. In order to qualify for chapter 7 bankruptcy, a person must make no more than $167 over the median income of the state. If the courts find out that a person does violate this requirement, the chapter 7 protection can be revoked and changed to chapter 13. Most people that file for chapter 13 bankruptcy will also be required to attend classes that will teach them about money management and personal finance. If you fail to attend the classes or do not pass, your bankruptcy may be revoked, which will erase any protection that you were granted from your creditors. The laws surrounding chapter 13 bankruptcy are quite complex. Should you ever have to file for bankruptcy, hire a bankruptcy attorney who can guide you through the process. Even though your finances may be tight, hiring a bankruptcy lawyer can save you time and make sure that your interests are protected in the wake of your looming bankruptcy.
