subject: Filing For Bankruptcy [print this page] Filing For Bankruptcy Filing For Bankruptcy
Filing for bankruptcy is our God given constitutional right in the United States. Many people who begin to contemplate filing for bankruptcy have a heavy heart and may feel as though they failed or guilty that they are even looking into bankruptcy. Whether you borrowed too much, spent too much, lost your job, too many medical bills, or you just got the worse end of our economy, bankruptcy may be your best option to debt consolidation or elimination. We are hear today to tell you that you should not feel guilty or down on your luck. More than likely it wasn't even your fault. Filing bankruptcy will actually provide you with the complete opposite feeling, relief and a fresh new beginning.
Title 11 of the United States Bankruptcy Code has six (6) chapter filing to protect and provide relief. Below is a brief overview of each chapter. The most common and most favorable bankruptcies are Chapter 7 and 13.
Chapter 7
Eligible: Individual, Partnership, or Corporation.
Discharges debt on your personal credit. Does not involve any replayment plan, just a fresh new start. The bankruptcy trustee is in charge of satisfying your creditors. Not all debt may be discharged such as federal loans such as student loans or federal taxes. Fastest form in which discharge may occur in one (1) to three (3) months.
Chapter 9 - reorganization of municipalities (cities, towns, villages, counties)
Chapter 11
Eligible: Individual, Partnership, or Corporation.
Chapter 11 is known as the reorganization bankruptcy. Creditors are also in more control of the reorganization and is therefore less favorable to Chapter 13 reorganization. Chapter 11 is the most complex bankruptcy in which few attorneys actually represent.
Chapter 12
Eligible: Family farmers and fisherman
Chapter 12 is solely for family farmers and fisherman who have a regular income and propose a payment plan to repay there creditors in the span of three (3) to five (5) years.
Chapter 13
Eligible: Individual, Partnership, or Corporation.
Chapter 13 is known as the wage earners plan. In this option, you must have a source of income in which you will propose to your creditors a plan to repay your debt either entirely or a negotiated portion depending upon the type of debt within a two (2) to five (5) year period. May not be any longer than five (5) years to obtain a discharge of your debt.
Eligibility Requirements: Individual unsecured debt may not exceed $360,475 and secured debt not to exceed $1,081,400. These figures were increased on April 1, 2010 but are constantly adjusted according to the consumer price index. An example of unsecured debt is a credit card in which the creditor does not have a lien on a certain object. Secured debt is when a creditor does have a lien on a object such as a car loan, mortgage, etc.
If the debt exceeds the requirements above, the bankruptcy may be moved into a Chapter 11.
Chapter 15 - allows a solutions for debt in more than one country. United Nations Commission on International Trade Law ("UNCITRAL")
