Straightforward Advice About Bankruptcy Petition

Jul 16th, 2014 | By | Category: Info

Your attorney will need to do a thorough investigation of your particular financial circumstances to be sure that a bankruptcy filing is good for you before filing your bankruptcy petition. This will entail questions about your debts, income, assets, and past payments to creditors. Once you have chosen to file for bankruptcy, you must choose which type of bankruptcy you’ll file. There are two basic types of consumer bankruptcies: Chapter 7 Bankruptcy and Chapter 13 Bankruptcy.

A Chapter 7 Bankruptcy is the most frequent type of bankruptcy, in which the Debtor surrenders all of his non-exempt assets to the Bankruptcy Court in order to accommodate a discharge on his applicable debts. However, not everyone qualifies for a Chapter 7 Bankruptcy. In order to be entitled to file a Chapter 7 petition, the Bankruptcy Code requires a Debtor to pass a Means Test. The Means Test determines whether there’s a presumption of abuse based on the Debtor’s ability to repay his debts. For example, a Debtor with debts of $50, 000 but who lives alone and earns $250, 000 a year would probably not pass the Means Test, as the Court would probably rule that such an income would allow him an occasion to repay his debt.

At issue are the city’s pension obligations, which would be reduced in the bankruptcy process. However, Ingham County Circuit Court Judge Rosemarie E. Aquilina says that would cause irreparable damage to pensioners, and asserts that in order to rectify the situation, Michigan Governor Rick Snyder must order the bankruptcy filing to be withdrawn. Kenneth Klee, the bankruptcy lawyer who spearheaded the bankruptcy restructuring of Jefferson County, Alabama, said a state judge can’t force Detroit out of federal bankruptcy, even if Snyder …

After the 341 (a) Meeting of Creditors, the Debtor has 45 days to produce a certificate with the Court showing that he has taken the mandatory Financial Management Course which will enable him to receive a discharge. The Bankruptcy Court won’t grant a discharge without the realization of this course-if the Debtor doesn’t complete it in time, the Court may close the Debtor’s case without granting a discharge.

Widening The Bankruptcy Petition Discussion

Absent any objections by the Trustee, the Debtor will then receive a discharge of his applicable debts. Dischargeable debt generally includes medical bills, credit card debt, and personal loans; debt that is generally not dischargeable includes student loans, particular types of unpaid taxes, alimony and child support, and debts for personal injury cased by driving while intoxicated.

The way Chapter 7 bankruptcy works is that a trustee is allocated to collect and to sell assets and non-exempt property to distribute the product of these items to pay back creditors. In Chapter 7 the debtor receives a discharge from all dischargeable debts. These debts may include child support, most taxes and student loans under the presentation of chapter 7 Bankruptcy.

New Jersey bankruptcy lawyer will make sure you maximize your available exemptions and get you the bankruptcy discharge you deserve.

Former N’Dubz singer Dappy has been charged with assault. Earlier this week he was told he was no longer under the threat of bankruptcy after paying off an outstanding tax bill. He had owed about £140,000 to HM Revenue & Customs but they withdrew a bankruptcy petition against the singer. An official from HMRC told a judge at a hearing in the High Court in London that the tax debt had been paid, later revealing how much the rapper had owed.


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