Chapter 7 Bankruptcy Plan

Feb 24th, 2014 | By | Category: Legal

While deciding to go through with Chapter 7 bankruptcy can be disheartening for some, there is usually a clear need to make it happen. When your debts become overbearing and there’s no way for you to go out from under them, this form of bankruptcy tends to become the best choice. Take a moment to look over the top 3 reasons why you should go this route and then schedule a date with a Chapter 7 bankruptcy lawyer.

Tabloids and gossip blogs have criticized Suleman’s spending and lifestyle, but she’s far from alone in her financial woes. Legal technology provider Epiq Systems estimates that 1.21 to 1.25 million Americans will file for bankruptcy this year, down from 1.38 million last year. While some assume that a bankruptcy filing means the person can’t resist the temptation of credit cards (and in some cases, it may), most people who will file for bankruptcy do so for other reasons. Here’s a look …

Chapter 12 bankruptcy is reserved for family owned farming and fishing businesses and was setup to offer more relief to farmers than they could get with Chapter 11 bankruptcy. Often family farms have debt much greater than the debt limits of Chapter 13 bankruptcy and, if the farm is configured as a business, Chapter 13 bankruptcy is not even an option. Chapter 12 bankruptcy is less expensive than Chapter 11 bankruptcy and allows the filer to pay off their debts according to a plan without out liquidating. Some of the advantages of Chapter 12 bankruptcy are that the filer doesn’t have to meet the means test as required for Chapter 7 bankruptcy, they do not need credit counseling and their assets aren’t liquidated. Chapter 12 bankruptcy also took account of the fluctuating and seasonal nature of farming or fishing income.

Can you believe this!

Chapter 13 bankruptcy is for a person who has a regular income and wishes to restructure their debts so they can pay them off over time. The debtor follows a plan adopted by the courts to pay back the debts over a series of years. The maximum allowable timeframe is 5 years. The courts work with the debtors to lessen the interest or eliminate it entirely in order to reduce the payments the individual needs to make. Once the debtor has finished making payments under the plan, the debt is discharged and the creditors can no longer take any action against the debtor. The biggest advantage to Chapter 13 bankruptcy is the debtor can keep the majority of their assets.

Daniel Gordon seemed bound for greatness before his role in Enron’s collapse helped send him to the penitentiary. At age 23, he already had a master’s degree from Yale and a prominent job as president of Merrill Lynch’s energy-trading division in 2000. But in 2003, Gordon pled guilty to wire fraud, money laundering and conspiracy, according to the Associated Press. When he got out of prison, Gordon got back into the world of business, making loans to pro athletes and running …

As your Chapter 7 bankruptcy lawyer will tell you, once your order has been discharged, you’ll be in a position to keep the revenue that you make. The only time any money will be pulled from you is if you end up getting property from a divorce, you enter a settlement agreement, death benefits are paid out to you or you inherit anything of value. If you’re planning on any of these happening, you’ll want to ensure that you have a word with your lawyer in order to identify the items you need to disclose to the court beforehand.


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