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What is meant by the term voluntary insolvency?
Voluntary insolvency, also known as voluntary liquidation, is a type o liquidation or bankruptcy that is supported by the members of the Board of the company and is not forced by Chapter 7 bankruptcy.
What is the effect of bankruptcy chapter 7 on mortgage loan?
Chapter 7 bankruptcy is also known as total bankruptcy. It's a wipeout of many (or all) of your debts. Also, it might force you to sell, or liquidate, some of your property in order to pay back some of the debt. Chapter 7 is also called "straight" or "liquidation" bankruptcy. Basically, this is the one that straight-up forgives your debts (with some exceptions, of course).
Can you file parking tickets under a chapter 7 bankruptcy?
Parking tickets cannot be discharged under Chapter 7 bankruptcy. They can, however, be discharged under Chapter 13 bankruptcy. Chapter 7 bankruptcy is known as "liquidation" bankruptcy. This generally means that all of a debtor's non-exempt property may be sold by a bankruptcy trustee, though the laws for property exemption are different in each state. For example, in New York, most debtors are able to keep all of their property. Chapter 13 bankruptcy is a 'reorganization of debts', and allows the individual to keep their property and income while paying off all or part of their debt over a three to five year period. In the case of a Chapter 13 bankruptcy filing, the parking tickets can be considered "unsecured" debts (similar to credit cards and medical bills), and can thus be treated as such for repayment.
In what area can Chapter 7 attorneys be found?
Chapter 7 attorneys are also known as Bankruptcy attorneys. They can help one find out your eligibility for Chapter 7 bankruptcy and get one a fresh start.
Which bankruptcy is known as a liquidation of all assets and allows the individual filing to be forgiven of the remaining debts?
Chapter 7 is liquidation. All non-exempt assets must be given to the trustee to be sold at auction. All debts that can be discharged will be discharged. Some debts, like student loans and child support arrears, cannot (as yet) be discharged, absent unusual circumstances.
What specifically does a chapter 7 lawyer provide services in?
Chapter 7 in terms of law refers to when a person or person is filing for a certain and specific type of bankruptcy that is then referred to and known as Chapter 7.
Why would one need to file Chapter 12 Bankruptcy?
There are both advantages and disadvantages to filing for bankruptcy. Chapter 7 is often known as debt liquidation bankruptcy and is a good options for many individuals are couples that are in dire financial straits. As soon as a debtor files for bankruptcy, there is an automatic stay and most creditors must stop their collection efforts. Thus, the debtor can begin rebuilding his credit; financially-speaking, the debtor can start over. It is true that filing for bankruptcy ruins a debtor's credit from a number of years and may cause embarrassment. However, incurring more debt and facing the harassing phone calls, letters and potential lawsuits from creditors can have the same effect. Filing for bankruptcy will allow many debtors to get started sooner on rebuilding their credit in peace.
What are the differences between Chapters 7 and 11 and 13 bankruptcies?
There is a big difference between these two. Chapter 7 is known as a debt liquidation bankruptcy whereas chapter 13 is debt restructuring. Chapter 7 involves getting the majority of your debts discharged (although not all are an option) and chapter 13 reorganizes your debts and the court sets up a payment plan.
How to File for Bankruptcy?
Filing Personal BankruptcyIf you are planning to file bankruptcy, you will have options for completing the process. Do it yourself, or hire an attorney to do it for you. You may also be able to simply hire a document preparer, who is not a licensed attorney, to prepare the documents for you. The cost of that would probably be less than the cost of hiring an attorney, although a document preparer also will not be qualified to render advice, and should not.Decide on the Proper Bankruptcy Chapter to File UnderBefore filing bankruptcy, you must decide on the type of bankruptcy to file. There are two types for consumers, being Chapter 7 and Chapter 13. They are distinctly different from one another, and will require different filing and different handling. Chapter 7 bankruptcy is known as liquidation bankruptcy, with the import of that phrase being that in exchange for a release from your debts, you agree to give up your property. Release from debts through bankruptcy is called discharge, and there actually are certain types of debts which cannot be discharged in Chapter 7 bankruptcy. These include student loans, taxes, and domestic support obligations, including child support and alimony. Other nondischargeable debts include fines and court fees. Most people filing Chapter 7, however, are not confronted by nondischargeable debts, and all of their debts are wiped away. This includes credit cards, medical bills, and the personal liability side of secured debts like car loans.Chapter 13 vs. Chapter 7Debts are treated differently in Chapter 13, with that Chapter providing a broader discharge. Chapter 13 bankruptcy is essentially favored by the law, because in Chapter 13, the debtor is making an attempt to repay some or even all debts.Do-it-Yourself Bankrtupcy Filing in Chapter 7Filing Chapter 7 bankruptcy is actually a fairly simple process, requiring submission of a set of documents, payment of a fee, and generally only one appearance at Court. Actually, in Chapter 7 bankruptcy you generally do not appear before a judge, but instead simply attend a meeting which is presided over by a court official known as the trustee. The trustee administers your case from start to finish, and will examine you at the meeting concerning statements made in your filing. In truth, the examination is rote, with the trustee asking nearly all filers the same simple questions. As for property given up in Chapter 7, this will be only so-called non-exempt property, which will not include your home, your retirement account, your clothing and personal items, or even your car in most cases. If you are considering Chapter 7, you can safely assume that you can complete the process with no assistance. There are kits available at bookstores that will provide all required forms. Bankruptcy is a federal process, and forms are standardized nationwide.Using an Attorney in Chapter 13Chapter 13 bankruptcy is eminently more complex, providing more protection for a debtor, but in exchange for a debtor's commitment to repayment of debts under a plan. The plan must be approved by the court, and it is detailed in its contents. Chapter 13 bankruptcy is a common recourse for people facing foreclosure on their homes, as that bankruptcy will allow them to repay arrearages and compel a mortgagor to accept that repayment. If you choose to file Chapter 13, you must expect to need an attorney to represent you in the process. Chapter 13 is far too complicated for a layperson to handle.
What is a Chapter 12 Lawyer?
A Chapter 12 lawyer is a legal expert who specializes in a particular type of bankruptcy known as Chapter 12 bankruptcy. Sometimes they may take on cases involving several different types of bankruptcy, and sometimes they may exclusively handle Chapter 12 cases. When an individual or a business ends up in a situation where its debt obligations are larger then its revenue, bankruptcy is a legal option that may be taken advantage of in order to prevent creditors from compensating assets. When bankruptcy occurs, it is often the result of difficult financial troubles, which may be the result of the economy as a whole or the financial situation of the debtor. There are several different types of bankruptcy. Chapter 12 protects farmers and fishermen. Since it is so specialized, it is often less well known than other types of bankruptcy. For an individual to legally qualify as a farmer of fisherman covered under Chapter 12, several conditions must be met. A Chapter 12 attorney can help identify if these conditions are met. First of all, the debts can not be greater than $1.5 million. A minimum of 80% of this debt must be farm or fishing related. A mortgage is not included in this figure. To qualify, the individual must also have earned at least half of their income from farming or fishing in the previous year. They also must be able to earn enough to make sufficient payments to be granted Chapter 12 bankruptcy. Farmers and fishermen often faced bankruptcy obstacles prior to the creation of Chapter 12 bankruptcy, which was created in 1986. Chapter 11 and Chapter 13 bankruptcy were inconvenient for farmers and fishermen to comply with. When Chapter 12 was introduced, many lawmakers felt that it was a temporary measure until more comprehensive laws were written for the other types of bankruptcy. It was originally set to expire in 1993, but the law was later changed. Chapter 12 bankruptcy is similar to Chapter 13 bankruptcy, but it has a higher debt ceiling. This is important because farmers and fishers incur much higher debts than typical workers during normal business operation. Chapter 12 bankruptcy allows a fisher or farmer to pay off debts within three or five years. In some circumstances, they may be given to opportunity to pay off these debts over a longer period of time. Chapter 12 bankruptcy is complicated to file and undergo, and it is virtually impossible without the assistance of a qualified legal representative.
What is a Chapter 13 Lawyer?
A Chapter 13 lawyer specializes in a specific type of bankruptcy law known as Chapter 13. When filing for any type of bankruptcy, it is typically necessary to get in touch with a lawyer in order to make sure that the debtor is able to receive the maximum benefit from the proceedings. Generally speaking, it is usually better to work with an attorney who specializes in the specific type of bankruptcy that is being filed for. Chapter 13 bankruptcy can be thought of as a form of debt reorganization. This is opposed to liquidation, in which an individual sells off all of their assets in order to pay of the debts that they can. For individuals who can demonstrate an ability to pay off some or all of there debt, but in a different time frame than the original contract required, this may be a better choice. For those who are hoping to keep their property, such as their home and car, this is typically a better option than Chapter 7 bankruptcy. Both Chapter 7 and Chapter 13 bankruptcy are for individuals, not businesses, which typically file for Chapter 11. With Chapter 13 bankruptcy, you first must visit with a credit counselor and give information about all of your debt. A list of monthly expenses is also required. Any money that is left over will be used to pay off your existing debts. Debt to employees, taxes, child support, and so on take the highest priority. Second priority debts are secured debt, like car payments. Unsecured debt, like credit cards, comes last. When you file for Chapter 13, creditors can no longer take legal action against you. The Chapter 13 lawyer will field all calls regarding the debt. If you fail to file for bankruptcy before your home goes into foreclosure, your home can still be compensated. To qualify, the about of debt is limited. Generally, you can not owe more than $900,000 in secured debt and $300,000 in unsecured debt. You must be able to demonstrate that you can repay the debt. Have a Chapter 13 lawyer look over your information to ensure that it is possible for you to handle the payments. If you find yourself in a situation where you are unable to honor the new payment plan, the court may allow you to convert the Chapter 13 bankruptcy into Chapter 7 bankruptcy. At the end of the bankruptcy period, most of your debts will be erased, although child support, alimony, and student loans typically will still need to be repaid.
How much does it cost to file chapter 7?
Generally speaking, there is not a minimum debt that qualifies you to file for bankruptcy but rather the court evaluates your income versus your debt to determine whether bankruptcy is appropriate. Known as a "means test", it is a complicated calculation that determines your ability to pay your creditors and also compares your financial status with that of the average person in your area. You have to pass this test in order to file for Chapter 7. Also, prior to being able to file you will undergo credit counseling.
