More Chapter 7 bankruptcy petitions are filed more than any other type of bankruptcy proceedings. Additionally, more individual consumers file bankruptcy cases than businesses. Roughly seventy percent of bankruptcy filings are Chapter 7 petitions filed by individual consumers. Power of the United States Trustee In Chapter 7 cases, the United States Trustee litigates issues that…
Bankruptcy proceedings begin with the filing of a petition with the bankruptcy court. A bankruptcy petition is a request that the debtor obtain some relief from current debts owed. Sometimes the request for relief is a request that many or all debts be extinguished. Sometimes the request for relief is a request that current amounts…
What do you do when you owe money to people you can’t pay? What options do you have? Let’s take a look at your options. You cannot undo the past. You cannot singlehandedly improve the economy. So let’s move forward. Figure out your alternatives. Two of the three alternatives below are acceptable, and will make…
When someone considers bankruptcy, he or she probably feels fear of the consequences of bankruptcy, such as having the bankruptcy show up on future credit reports, for a period of time. Benefits of Bankruptcy The benefit of bankruptcy is a fresh start – the ability to rebuild credit and get back on top, and cessation…
Millions of Americans are struggling to pay off their bills after the recent economic depression. They have been forced to file bankruptcy to discharge their overwhelming debts. They can discharge their debts easily and liberate themselves from financial burden. Therefore, if you are contemplating filing bankruptcy then it is advisable to hire a bankruptcy attorney….
Many people begin to consider filing for bankruptcy when they have no ability to repay debts, and no other way to stop the incessant telephone calls and collection efforts of creditors. Some people, however, consider simply ignoring the creditors, shutting off the telephone ringer, and pretending there is no problem. Avoiding creditors not only doesn’t…
Creditors Must Stop Attempting to Collect While a Bankruptcy Action is Pending Most people who ultimately file for bankruptcy first spend a lot of time trying to find another way. A person will cut out unnecessary expenses, review and re-review income and debt, and finally come to the conclusion that there is no way to…
No one hopes to file bankruptcy. No one enjoys it. Filing for bankruptcy is a very personal decision. But filing for bankruptcy is not the end of the world. Bankruptcy laws are intended to help people, not harm them. There are, of course, consequences to filing bankruptcy, but there are also many benefits. If the…
Filing for bankruptcy is an extremely personal decision. It can also be a very emotional decision. Filing for bankruptcy may be done by an individual without the help of an attorney, but there are consequences if a mistake is made. Corporations and partnerships are not allowed to file for bankruptcy without an attorney. Important…
Bankruptcies have become more and more common in today’s economy. There are many types of bankruptcies. You may have heard of Chapter 7 bankruptcy, Chapter 11 bankruptcy, or Chapter 13 bankruptcy. Those are probably the most common types. Most people who have heard of these types of bankruptcy, however, have no idea what they mean…
The United States Bankruptcy Code permits individuals to file for bankruptcy in certain circumstances. The Bankruptcy Code has many provisions and many avenues under which a person or business entity may file a for bankruptcy. Chapters 7, 11, and 13 are the most common. Chapter 12 is probably next in line but is far behind…
In Chapter 13 bankruptcy, the United States Trustee supervises the private trustees who administer Chapter 13 cases. In this chapter, the trustee does not liquidate the debtor’s assets, but instead evaluates the debtor’s financial affairs and makes recommendations to the court regarding the debtor’s proposed repayment plan. Purpose of Chapter 13 Bankruptcy Chapter 13 bankruptcies…
The Creation of Bankruptcy Article I, Section 8, of the United States Constitution authorizes Congress to enact “uniform Laws on the subject of Bankruptcies.” Under this grant of authority, Congress enacted the “Bankruptcy Code” in 1978. The Bankruptcy Code, which is codified as title 11 of the United States Code, has been amended several times…
The Department of Justice and the U.S. Trustee are charged with ensuring the integrity of the bankruptcy system. In order to accomplish this, the U.S. Trustee program may oversee the administration of cases and engage in litigation to enforce compliance with the law. While both individuals and corporations or partnerships are permitted to file bankruptcy…
Bankruptcy refers to a legal proceeding through which individuals and companies may petition a court to extinguish debts or to reorganize or restructure debts. You may have heard of Chapter 7 bankruptcy, Chapter 11 bankruptcy, or Chapter 13, bankruptcy. “Chapter” refers to the location of the bankruptcy provisions in the Bankruptcy Code. There are other,…
A bankruptcy case normally begins by the debtor filing a petition with the bankruptcy court. A petition may be filed by an individual, by a husband and wife together, or by a corporation or other entity. The petition will be filed in accordance with a chapter in the United States Bankruptcy Code. A determination of…
Minnesota Bankruptcy Pros & Cons Are creditors calling relentlessly? Do your monthly bills for past debt far exceed your monthly ability to pay? Do you lay awake at night trying to figure out what to do? Are you among the many individuals considering bankruptcy in this economy? Who Files for Bankruptcy? If you are considering…
Discharge in bankruptcy refers to permission to no longer repay certain debts. Certain debts are “dischargeable” in bankruptcy. Credit card debt is dischargeable. Student loans, tax debt, and court ordered child support obligations are not dischargeable through bankruptcy. Purpose of a Discharge The purpose of a discharge is to provide relief from some or all…
There should be no shame in filing for bankruptcy. Most of the time the thought of filing bankruptcy triggers anxiety, sadness, and sometimes shame. Understanding the process and hiring a knowledgeable attorney should help greatly to reduce the anxiety. The sadness will pass over time. As a person begins to rebuild his or her credit…
For some people, their debt just keeps multiplying and there is little realistic chance of getting out from under it other than through bankruptcy. Many people hate this idea. Some people look down on it. People need to realize, however, sometimes bankruptcy is the responsible thing to do for oneself, one’s family, and one’s future…
All bankruptcy cases are heard by federal courts, not state courts. Bankruptcy cases must be filed in federal courts. State courts are not permitted to hear these matters. Types of Bankruptcy Proceedings There are several types of bankruptcy proceedings that may be filed. One commonly filed type of bankruptcy petition is a petition that requests…
Bankruptcy laws help people who can no longer pay their creditors get a fresh start – by liquidating assets to pay their debts or by creating a repayment plan. Bankruptcy laws also protect troubled businesses and provide for orderly distributions to business creditors through reorganization or liquidation. Common and Uncommon Avenues for Bankruptcy Relief Most…
The procedural aspects of the bankruptcy process are governed by the Federal Rules of Bankruptcy Procedure (often called the “Bankruptcy Rules”) and local rules of each bankruptcy court. The Bankruptcy Rules contain a set of official forms for use in bankruptcy cases. The Bankruptcy Code and Bankruptcy Rules (and local rules) set forth the formal…
Bankruptcy proceedings begin with the filing of a petition with the bankruptcy court. The filing of the petitions creates a bankruptcy estate. The Identity of the Bankruptcy Estate If the debtor is an individual who files for bankruptcy under chapter 7 or 11, the bankruptcy estate is treated as a new taxable entity, separate from…
Each of the 94 federal judicial districts handles bankruptcy matters, and in almost all districts, bankruptcy cases are filed in the bankruptcy court. Bankruptcy cases cannot be filed in state court. Types of Bankruptcy Cases Each bankruptcy court hears a variety of bankruptcy cases. Debtors applying to the bankruptcy courts for financial relief may seek…
One of several results from a bankruptcy case is the discharge of some or all debts owed by the debtor to creditors. This is not the only result, however. Repayment plans and reorganization will result from some forms of bankruptcy proceedings. Not All Debt is Dischargeable Additionally, not all debt is dischargeable. Many debts to…
A dischargeable debt is a debt that does not have to be repaid after bankruptcy. It is discharged or eliminated from the debtor’s obligations. Not all debts may be discharged. Whether a debt is dischargeable will depend on the type of bankruptcy filed. The United States Bankruptcy Code contains a list of debts that are…
Chapter 7 bankruptcy is known as the “liquidation” bankruptcy process. There are other processes under other chapters of the United States Bankruptcy Code, however. Statistics show that debtors file Chapter 7 bankruptcy petitions more frequently than petitions under any other chapter. This is likely due to the discharge of many assets available to individual debtors…
The bankruptcy court system uses many terms in the course of its proceedings that may not be commonly understood. Many people will have some idea of the meaning of the terms without having complete understanding. The Importance of Understanding Bankruptcy Terminology If you are filing for bankruptcy, it is important to understand each term so…
Save All Documentation Many cases against debt collectors are unsuccessful because the consumer failed to retain important documents. It’s important to save and document any communications between yourself and the debt collector or debt collection attorney. This includes letters and voicemail messages sent by the collector. You should also maintain a call log. The log…
