Most of the time our clients want to know: “Do I have to go to court?” The answer is yes but it’s not like what you see on TV. Section 341 of the Bankruptcy Code requires that all debtors meet with the trustee and answer questions pertaining to his or her bankruptcy case. When [...]
Most people believe that if you file bankruptcy your credit will be ruined. While it is true that filing a bankruptcy case will affect your credit, it does not mean that you cannot re-establish credit after your bankruptcy case is over. Most people who file bankruptcy have already taken a hit on their credit [...]
People who file for bankruptcy seek protection from their creditors for the debts they have incurred. The U.S. Constitution gives this power to the federal government, and the federal government has established U.S. Bankruptcy Courts to handle bankruptcy proceedings across the country. When a person files for bankruptcy protection, he or she creates a bankruptcy estate. A bankruptcy [...]
The following is an overview of the early course of a typical Chapter 12 bankruptcy case. See Chapter 12: Basics and Eligibility for an overview. Filing the Petition This type of bankruptcy case begins by filing a petition with the bankruptcy court serving the area where the individual lives or where the corporation [...]
The means test is often the starting point for anyone who is filing for bankruptcy. It determines if you are eligible for Chapter 7 bankruptcy, and impacts your plan length in Chapter 13 bankruptcy. The means test is a complicated form, and mistakes are common. Read on to find out what some of the most [...]
Chapter 11 usually makes it to the news when large corporations fall into financial distress and need bankruptcy relief. Corporations that have filed Chapter 11 include General Motors, United Airlines, Lehman Brothers, and K-Mart. Most Chapter 11 cases, however, never hit the news. In 2010, for example, close to 14,000 Chapter 11 cases were filed [...]
For a small business in financial distress, bankruptcy may be the only viable option. There are two restructuring options under bankruptcy law for debtors who want to try to stay in business: Chapter 11 and Chapter 13. For a "straight" or "liquidation" bankruptcy: Chapter 7. General Overview To some extent, Chapters 11 and [...]
Prior to October 17, 2005, it was largely up to a bankruptcy judge to decide whether a debtor met Chapter 7 requirements. Judges, therefore, could use substantial discretion when assessing the debtor's financial situation. As a result, under the old law, most filers chose to have debt discharged even if they were financially capable of [...]
Chapter 12 is designed for "family farmers" or "family fishermen" with "regular annual income." It enables financially distressed family farmers and fishermen to propose and carry out a plan to repay all or part of their debts. Under chapter 12, debtors propose a repayment plan to make installments to creditors over three to five years. [...]
