Digging Deeper Into Chapter 13 Bankruptcy Information

Jun 3rd, 2014 | By | Category: Debt

Most of the people think that bankruptcy is simply the process people go through to get rid of paying their financial obligations. However, new bankruptcy laws make it harder for some persons to achieve this through bankruptcy. It simply means that more individuals have to attempt to repay their debts, even with bankruptcy protection.

Commonly bankruptcy laws are put in place to help people who can no longer pay their creditors and to obtain a fresh start by liquidating assets to settle their debts or through a repayment plan and protect troubled businesses. Most bankruptcy cases are made under the three main chapters of bankruptcy code namely; Chapter 7, Chapter 13, and Chapter 11.

Bankruptcy is actually very complicated. Have you ever asked yourself what’s the difference between Chapter 7, Chapter 11, and Chapter 13? Come and let us take a look.

Current Chapter 13 Bankruptcy Information News:

It is often denoted as the ‘liquidation’ bankruptcy. It generally allows the debtor to eliminate debts without repaying them. This type of bankruptcy is normally reserved for individual debtors, not those who run businesses or businesses themselves.

Under Chapter 7 Bankruptcy protection, a trustee is appointed to the filer, and is liable for ensuring that any assets that are secured and can be sold are sold-and that the income from the sale are given to the particular creditor that secured the purchase in the first place.

Blacks are about twice as likely as whites to wind up in the more onerous and costly form of consumer bankruptcy as they try to dig out from their debts, a new study has found. The disparity persisted even when the researchers adjusted for income, homeownership, assets and education. The evidence suggested that lawyers were disproportionately steering blacks into a process that was not as good for them financially, in part because of biases, whether conscious or unconscious. The vast majority …


Chapter 7 bankruptcy explained. It is often denoted as the ‘liquidation’ bankruptcy. It generally allows the debtor to eliminate debts without repaying them. This type of bankruptcy is commonly reserved for individual debtors, not those who run businesses or businesses themselves. Under Chapter 7 Bankruptcy protection, a trustee is appointed to the filer, and is liable for ensuring that any assets that are secured and can be sold are sold-and that the income from the sale are given to the particular creditor that secured the purchase in the first place.

It is denoted as the ‘rehabilitation’ bankruptcy. The individual or business can file for Chapter 11, in other words the creditors may involuntarily file for the debtor in certain situations. Debts are reorganized to permit the individual or business a better chance of repaying them under Chapter 11. The creditors are contacted to get different terms on any loans and interest rates may be lowered.

If you have a large amount of consumer debt that you cannot get rid of, this could give you the opportunity to start over. If you’re wondering whether or not you qualify for Chapter 7, you can choose to talk to a lawyer for more information.

Usually if the court finds the individual didn’t produce adequate financial records, committed an offence of perjury, unable to explain loss of assets, concealed, illegally transferred property to try and move it out from the ground and failed to fill out a financial management course as required of all debtors filing bankruptcy, an individual may be denied debt discharges under Chapter 7.

It is denoted as the ‘rehabilitation’ bankruptcy. The individual or business can file for Chapter 11, in other words the creditors may involuntarily file for the debtor in certain situations. Usually Chapter 11 is filed by corporations or other businesses rather than individuals.

The chapter 7 bankruptcy information is all about giving a debtor a fresh start by wiping out his debts. To be honest, the guidelines that underline the reasons why you to file chapter 7 aren’t easy to accomplish. In order for you to qualify, you need to write the chapter 7 Means test.

A Chapter 7 Means Test is a requirement, if you wish to file for bankruptcy relief. You need to fill-out the official bankruptcy form 22A or the state of current monthly income and calculations. You must provide information that would help determine your means to pay back debts, on this form.

Debts are reorganized to permit the individual or business a better chance of repaying them under Chapter 11. The creditors are contacted to get different terms on any loans and interest rates may be lowered. The amount of time you are required to repay a debt may be applied to make the monthly payments lower and hopefully, easier to manage. A trustee is appointed to oversee the assets but nothing is sold at this time.

This won’t enable you to get rid of your debts, you’re just simply restructuring and changing the conditions of the debt and making plans to pay it back continuously through future earnings.

It is likewise called a ‘wage earner’s plan’ bankruptcy. It enables the individuals with regular income to formulate a plan to repay all or a portion of their debts. The debtors propose a repayment plan to make instalments to creditors over three to five years. Under Chapter 13, the individuals will be given an opportunity to save their homes from foreclosure. This may help solve delinquent mortgage payments over time, it allows individuals to reschedule secured and extend them for the period of the plan. Doing this may lower the payments.

It is also called a ‘wage earner’s plan’ bankruptcy. It enables the individuals with regular income to formulate a plan to repay all or a portion of their debts. The debtors propose a repayment plan to make installments to creditors over three to five years.

You have to present a petition under the bankruptcy court serving the region where the debtor resides. The debtor must also deposit with the court the schedules of assets and liabilities, schedule of executory contracts and unexpired leases, schedule of current income and expenses, and a declaration of financial affairs.

Providing solution to people in need of debt help is just few clicks away from you. You just need to complete a form and speak to a debt consultant and bankruptcy help may reduce your monthly payment. Bankruptcy information will provide you options to reduce your monthly owe and walk out of debt and to prevent the long term negative consequence of bankruptcy. Make a move now and get rid of all dischargeable debts.

best information source for Chapter 13 bankruptcy?
What is the best book about Chapter 13 bankruptcy?

  • The best and most current info is on-line at the Federal Courts website: http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Chapter13.aspx The Federal Bankruptcy Code itself can be seen in its entirety here at a site operated by the Cornell University Law School: http://www.law.cornell.edu/uscode/html/uscode11/usc_sup_01_11.html I strongly urge you NOT to follow links that may be posted to websites in the Bahamas (ending in .BS, such as we.bs) or on a remote island belonging to New Zealand (ending in .tk), or websites ending in .uk (those are in the United Kingdom, not the USA), or .cn (China). There are spammers that frequently post links to these sites in response to bankruptcy questions on Answers.Yahoo.com and they are indeed spam, NOT reliable info. Usually links to websites ending in .gov (government websites) or .edu (higher education websites) are more likely to be reliable than anything ending in .com (commercial) or in the URL code for some other country than the one in which you live. Print books are likely to be outdated by the time they hit the shelves.

  • How about the United States Bankruptcy Court website.


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