Chapter 7 Bankruptcy - Liquidation
Chapter 7 bankruptcy is designed for debtors who are unable to repay their debts due to financial difficulties. If your current monthly income is greater than the State Median Income, you will be required to complete a Means Test to determine if you qualify for this type of bankruptcy relief. If you do not satisfy the requirements of the Means Test, you may be precluded from filing a Chapter 7 bankruptcy and have the option of converting to or filing a Chapter 13 bankruptcy.
In Chapter 7 Bankruptcy, the Trustee assumes possession of all of the debtor's assets. Under Arizona law, you may claim certain property as exempt. This notice includes a copy of the Arizona Exemption Law as an attachment. You can only exempt the value of assets that are not subject to your creditors' liens. The Trustee then liquidates the non-exempt assets and uses the proceeds to repay your creditors in accordance with the Bankruptcy Code's priority list.
Chapter 7 bankruptcy is filed in order to obtain a discharge of existing debts. If, however, the court determines that you engaged in certain types of unethical conduct described in the Bankruptcy Code, your discharge may be denied, and the purpose for which you filed for bankruptcy will be defeated.
Even if you receive a discharge, the law prohibits the discharge of certain debts. Consequently, you may still be liable for certain taxes and student loans, alimony and support payments, criminal restitution, and debts for death or personal injury resulting from driving under the influence.
Under certain conditions, you may be able to retain property subject to a valid security interest that you have acquired. Among these alternatives are redemption, as well as the renewal or reaffirmation of a pre-bankruptcy debt. Your attorney can clarify the available options to you.
Chapter 13 Bankruptcy - Repayment of All or a Portion of a Person's Debts who has a Regular Income
Chapter 13 Bankruptcy is intended for individuals with a regular and stable source of income who are temporarily unable to pay their debts but who wish to pay them in installments over a period of time, subject to the protections afforded by the Chapter 13 Bankruptcy rules. You are only eligible for Chapter 13 bankruptcy if your debts do not exceed the dollar thresholds specified in the Bankruptcy Code.
Under Chapter 13 Bankruptcy, you must present a plan with the court to repay all or a portion of the money you owe to your creditors through your earnings or the sale and/or abandonment of certain collateral, such as real estate and motor vehicles. You are generally protected from your creditors upon filing for bankruptcy, but your plan must be approved by the court before it can go into effect. Unlike Chapter 7 Bankruptcy, Chapter 13 Bankruptcy allows you to retain all of your property, both exempt and nonexempt, so long as you continue to make payments according to the plan.
Except for domestic support obligations, student loans, and specific taxes, among others, your debts are discharged upon conclusion of payments under the plan.
Chapter 11 - Restructuring
Chapter 11 bankruptcy is primarily designed for the reorganization of enterprises, but consumer debtors may also file. Its provisions are quite complex, so any decision to file for Chapter 11 bankruptcy should be reviewed by an attorney. The overwhelming majority of consumer debtors cannot afford to file for Chapter 11 bankruptcy.
Chapter 12 Family Farmer in Bankruptcy
Chapter 12 is designed to allow family farmers to repay their debts over time with future earnings and is similar to Chapter 13 in many respects. The eligibility requirements are stringent, limiting eligibility to those whose primary source of income is a family-owned farm.
Financial Counseling
Reputable credit counselors can advise you on money and debt management. They may also be able to create a repayment plan for your debts. However, the majority of credit counselors lack credibility and charge excessive fees and contributions that will cause you to incur additional debt. In addition, numerous organizations misrepresent their non-profit status and/or their affiliations with religious or charitable organizations. The Kelly Law Firm, L.L.C. only recommends credit counseling services from organizations that have been approved by the United States Trustee Department or the Administrator of Bankruptcy.
Integrity is Required
A person who knowingly and fraudulently conceals assets or makes a false oath or statement under penalty of perjury in connection with a bankruptcy case under this title is subject to a fine, imprisonment, or both, and all information provided by a debtor in connection with a bankruptcy case under this title is subject to examination by the Attorney General.
Final Reflections
Since its 2005 reform, the legal community has reached a consensus that the Bankruptcy Code has become significantly more complicated. Due to the complexity of the law after the Bankruptcy Code was reformed, many attorneys decided to cease practicing bankruptcy law. Clearly, if licensed attorneys are confused by the new law, clients should not rely on themselves or """"licensed document preparers"""" to navigate this challenging procedure. Employ a qualified attorney who will personally assist you through this trying ordeal. According to the adage, you get what you pay for.
We are available to assist you during this challenging time.""
" - https://www.affordablecebu.com/
