Chapter 7 bankruptcy does not require the filing of a repayment plan. The trustee investigates the nonexempt assets of the debtor and uses them to repay the debtor's obligations. It is essential to remember that some of the debtor's assets may be subject to liens. All bankruptcy cases are subject to court fees, administrative fees, and a trustee surcharge. The attorney's fee varies from state to state.
Chapter 9 bankruptcies are exclusive to """"municipalities"""". This comprises municipalities, school districts, townships, and public improvement districts. In Chapter 9 bankruptcy proceedings, there is no provision for the liquidation of assets to satisfy debts. This type of case is resolved by extending debt maturities, reducing the principal or interest on loans, or refinancing the debt.
Only enterprises, corporations, sole proprietorships, and partnerships are eligible for Chapter 11 bankruptcy. In this type of situation, the business and its individual proprietors are two distinct entities. Chapter 11 is an effort to reorganize debts in order to keep a business operating and pay creditors over time.
Chapter 12 bankruptcy is designated for """"family farmers"""" and """"family fishermen"""" with a consistent annual income from their business. Under this repayment plan, family producers and family fishermen are permitted to repay creditors in three to five-year installments.
Chapter 13 Bankruptcy is for individuals or businesses who desire to restructure their debts and develop a repayment plan that is typically between three and five years. This eliminates the need to sell any property. Additionally, it permits individuals to restructure secured debt and potentially reduce monthly payments.
If you are unable to pay your mortgage, credit card bills, and keep food on the table, it may be time to consider filing for bankruptcy. Individuals can choose between Chapter 7 and Chapter 13 bankruptcy. Your attorney will be able to advise you on the best option for your specific circumstance.""
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