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formed program was produced by the united states please
directly named heights and think that's the case is
these are referred to by their chapter number in the bankruptcy code
chapter seven chapter eleven
and chapter thirteen
the bankruptcy code is bad role not state law
and bankruptcy cases are filed in the united states bankruptcy court
not in a state court
the most common types of cases for individuals our chapter seven and chapter thirteen
eye-catching seven is elec would aid in bankruptcy
in return for having jets distro
explaining the debtor is no longer legally obligated to pay them
the debtor must turn over certain property to the chapter seven bankruptcy trustee
the law allows the gender
he keeps some property
as exact said the debtor can make a fresh start
in most chapter seven cases all properties exams and so the debtor keeps all of the property
those cases are sometimes called
no has set
cases
if it's better has more assets than can be exempted
the trustees tells the non exempt property and distributes the proceeds to the creditors
according to prioritise established by law
very often there is not enough money to pay for anything more than the cost of administration
and set the creditors received nothing
the principal advantage of chapter seven is that the debtor emerges from bankruptcy without
any future obligations on his or her discharge status
sundance cannot be interested
for example debts incurred to fraud or debts for child support and alimony
chapter thirteen
disheartening news by individuals
who wanna catch up pastu mortgage or car loan payments
and keep their hands that's
in chapter thirteen the debtor must propose in good faith to pay all or part of the deaths
from future income over a period of three to five years
if the court approves the plan
the debts may be settled in this manner
even some creditors object to the plane
if the debtor makes the required payments he or she will be able to keep
his or her property
chapter thirteen can be a better choice the chapter seven
for those who are behind on their home mortgage for the car loans
as well as for other reasons
for instance some of the things that cannot be discharged in a chapter seven
can be discharged in chapter thirteen
also the debtor can pay some nandi is chargeable federal taxes over the term of the chapter
thirteen planned without interest
chapter thirteen can only be used by an individuals that are not by a corporation
in individually gauged in business
not as a corporation might use chapter thirteen to pay that scores settle them over a period
of time
all he or she continues to alone and operate the business
however
chapter thirteen can be used only if its total debts of are less than certain limits for
secured and unsecured debt
another type of bankruptcy case is a chapter eleven reorganization
it is generally used by businesses they can be used by an individual debtors
who do not qualify for chapter thirteen
because their debts it's save the chapter thirteen limit