Filing for bankruptcy is not as scary as most people make it out to be. In fact, there are numerous benefits to be gained. Although filing isn’t necessarily for everyone, the benefits of the process can cover a wide range of issues that go along with financial hardships. Big or small, the potential for relieving financial stress and getting back on track are enough to make it worthwhile.
For anyone considering bankruptcy, the decision isn’t easy let alone very debtor-friendly. Although the process isn’t mean to be difficult for consumers, most people lack the understanding to guide them through the process. When considering bankruptcy, a little preparation goes a long way.
Chapter 13 An Affordable Plan Of Repayment Chapter 13 is an important feature applicable to all types of bankruptcy filings is the automatic stay. The automatic stay means that the mere request for bankruptcy protection automatically stops and brings to a halt most of lawsuits, repossessions, foreclosures, evictions, garnishments, attachments, utility shut-offs, and debt collection activity. Under Chapter 13, the debtor proposes a plan to pay his creditors over a 3- to 5-year period. This written plan details all of the transactions (and their durations) that will occur, and repayment according to the plan must begin within thirty to forty-five days after the case has started. During this period, his creditors cannot attempt to collect on the individual’s previously incurred debt except through the bankruptcy court. In general, the individual gets to keep his property, and his creditors end up with less money than they are owed
With the economy still on life support, many Americans have found themselves buried under a mountain of debt with no feasible way out. When faced with these circumstances it is better to file bankruptcy sooner rather than later. Why wait until the creditor harassment has become too much to bear? Why wait until you are threatened with a lawsuit, judgment, wage garnishment, or foreclosure
www.tacomalawfirm.com Washington business and real estate lawyer Jeff Helsdon discusses whether or not a Chapter 11 bankruptcy is the right choice for you. When comparing different bankruptcy options, you may have a lot of questions about which plan would work better for you. A Chapter 11 bankruptcy plan is available for both individuals and business, small and large.
There are risks and benefits to either type of personal bankruptcy filing, but many people find Chapter 7 to be the more desirable type of case. When searching for debt elimination, Chapter 7 is your best option. However, not everyone will qualify and many people will end up filing for Chapter 13 instead. Behind Chapter 13 Actually, filing for Chapter 13 to begin with can be the better option depending on the type of debt you carry. Even if Chapter 13 there is no guarantee that you will be liable for full debt repayment. The courts uses several factors to determine how much you will be responsible for repaying and which creditors will get paid.
WILMINGTON, Del./LOS ANGELES (Reuters) – The Los Angeles Dodgers' sale to a group led by basketball legend Earvin “Magic” Johnson for $2.1 billion and the Major League Baseball team's plan to exit Chapter 11 this month were approved by a U.S. bankruptcy judge on Friday.
Saturday April 7, 2012 RANDALL CHASE AP Business Writer DOVER, Del. — The Los Angeles Dodgers filed a revised reorganization plan on Friday and said they are on track to exit bankruptcy as planned by April 30. The amended Chapter 11 plan filed Friday in U.S. Bankruptcy Court in Delaware is based on an agreement announced last week to sell the team for more than $2 billion,
Bankruptcy is a federal debt relief process that allows individuals, businesses, or farmers to obtain federal protection for elimination or reduction of their debts. (A debtor may also repay all of their debts under revised repayment terms as well.) There are two main types of bankruptcy – re-organization and liquidation bankruptcies. Chapter 7, which is a liquidation bankruptcy, is the most common bankruptcy and is filed by individuals. Chapter 13, which is a re-organization bankruptcy, is gaining in popularity since congress passed an act in 2005 preventing abuse of chapter 7 bankruptcy filing (filing chapter 7 when the debtor was able to pay off their debts) A chapter 7 bankruptcy is known as a liquidation bankruptcy because when you file under chapter 7, your bankruptcy trustee will take any of your non-exempt property and sell (liquidate) it to repay your creditors (ie, the people you owe money to.) However, some of your property is exempt in bankruptcy and you will be able to keep it. In many cases the debtor has no property that they will lose, and large debts that will all be eligible to be erased in bankruptcy. Once your assets have been sold, and your bankruptcy case is completed most (debts such as judgments against you in court, child support, divorce payments, back taxes that are not older than three years, mortgages and car payments are not wiped out) of your unsecured debts are erased. In some cases, you will not be eligible to file chapter 7, and you will have to file chapter 13; if your average monthly income is greater than the state’s average income, you must apply the means test to your financial situation to see if you are eligible to file chapter 7.