Chapter 7
Potential Chapter 7 debtor should understand that a straight bankruptcy case does not present a plan of repayment as in chapter 13, but sees the receiver is the collection and sale of the debtor's nonexempt assets, from which holders of claims (creditors) code to receive distributions in accordance with the law the Bankruptcy Code. Part of the property may be subject to the constraints of the borrowing and mortgagesHe promised that the property of other creditors. Moreover, according to Chapter 7 individual debtor is authorized to exempt certain "retention of title. Rest of the debtor's assets are liquidated administrator. Consequence, potential borrowers should remember that the submission of a petition in Chapter 7 can cause loss of property.
To qualify under Chapter 7 bankruptcy, the debtor, the firm must be an individual, partnership, or A. 11 USC§ § 109 (b), 101 (41). Relief under Chapter 7, regardless of the amount of debt are not available or if the debtor is solvent or insolvent. The individual can not present under Chapter Chapter 7, or whatever, but if the previous 180 days before the debtor's bankruptcy was dismissed because the defendant was intentional or not comply with a court order of court or voluntarily dismissed the case before, after 'shares to creditorsbankruptcy court to recover assets which they hold liens on. 11 USC § § 109 (g), 362 (d) and (e).
One of the main purposes of bankruptcy is to discharge certain debts, an honest individual debtor a "fresh start". Discharge led to the conclusion of the personal liability of the debtor, debts dischargeable. In Chapter 7 if discharge is available only to individual debtors, not to individuals or companies. 11 USC§ 727 () (1). While the presentation of the petition, a period of Chapter 7 debt general right of individuals to discharge is not absolute, and some types of debts are discharged. In addition, the bankruptcy discharge does not extinguish a lien on the property.
Chapter 11
code file under Chapter 11 of U.S. Bankruptcy Bankruptcy is often referred to as a "reorganization".
How Chapter 11Work
Bankruptcy case, the beginning of bankruptcy filed in bankruptcy court. Fed R. bunkers. P. The 1002 petition is a voluntary request of the debtor, filed an involuntary petition, or may be, the creditors filed meets certain requirements. 11 USC § § 301, 303 voluntary petition must adhere to the format of Form 1 of the Judicial Conference of the official forms required by the United States.official forms can be purchased at legal stationery stores or downloaded from the Internet at http://www.uscourts.gov. voluntary petition contains standard information regarding the name of the debtor (s), social security number or tax identification number, address, location of important assets (in business), the debtor's plan or intention, plan to submit an application for exemption under the relevant section of the Bankruptcy Code. In addition, a voluntary petitionIndicate whether the debtor is considered a small business as defined in 11 USC § 101 (51c) and if the borrower chooses to be as small businesses under 11 USC § 1121 (e).
When submitting a proposal for a voluntary assistance under Chapter 11 or involuntary admission to the exemption, the debtor automatically assumes that the other identities, as "debtor in possession". 11 USC § 1101 ° The term refers to the borrower, leading to provision andControl over their assets, while reorganizing under Chapter 11, without appointing a trustee of the matter. The debtor is a debtor in possession until the debtor's reorganization plan is confirmed, the debtor is rejected, the application or order is converted to Chapter 7, Chapter 11, or an administrator. Appointment or election of a trustee occurs only in a small number of cases. Typically, the debtor, as debtor-possession, practice and implementation of manyFunction, which leads the administrator in cases under other chapters. 11 USC § 1107 (a).
Written statement of communication and a reorganization plan must be submitted to the court. 11 USC § 1121 Disclosure Statement is a document that contains information about assets, liabilities to include, and the debtor business to permit a creditor to make an informed assessment of the debtor's reorganization plan. 11 USC § 1125 InformationCalls are subject to judicial discretion and the circumstances of the case. Content of the plan to classify the claims and to determine how to treat each class of claims under the plan. 11 USC § 1123 of the creditors concerned, namely those whose contractual rights to be modified or who will pay less than the full value of their rights under the plan, the vote on the Plan vote. 11 USC § 1126 after the disclosure of informationapproved and the cards are collected and counted, the bankruptcy court hearings to confirm whether the plan to confirm. 11 USC § 1128
Chapter 12
In chapter 12, for adjustment of the agricultural sector to cope with the economic situation in the area of family law was repealed in this chapter, farmers face many obstacles families, whether to reorganize successfully and after 11 or 13 the Bankruptcy Code. For example, in Chapter 12 for moreefficient, less complicated and less expensive than Chapter 11, which is better for the reorganization of large corporate customers. There are also some family farmers in Chapter 13, good as it was designed for incomes that are below the debts of family farmers. In Chapter 12, Congress sought to combine the elements of the transformation of a peasant family of the Bankruptcy Code, which is still the framework for success. At the time the Chapter 12Congress could not be sure that Chapter 12 relief would be for the family farm in perpetuity. Under the law (which originally provided that no chapter 12 cases filed after September 30, 1993) states that at present, no case in the chapter on May 12, after 1 July 2000 Filed.
The Bankruptcy Code provides that the family farmers only "regular annual income, the exemption may file for Chapter 12 to 11 USC § § 101 (18), 109 (f). OrderThis requirement is to ensure that the debtor's annual income is sufficiently stable and regular to enable the debtor to payments under the Chapter 12 plan. The paper is in Chapter 12, but for situations where they can have a family farm, the income of a seasonal nature. Relief in this chapter is voluntary and can not ask the debtor to file under Chapter 12.
Chapter 13
Chapter 13 is dedicated to people with regular income, the design requiredtheir debts but are currently not able to this. The purpose of Chapter 13 is to enable financially distressed individual debtors to propose to the court under the supervision and protection, and make repayment plan under which creditors are paid for a longer period. In this chapter, the debtor has no creditors, in whole or in part, in installments over three years, are prohibited during which creditors are starting or continuing collection efforts. PlanProvisions relating to payments due in three years "and must be approved by the court. In no case the plan provide for payments for a period exceeding five years. 11 USC § 1322 (d).
Any person, including a partnership or a self-operating business for Chapter 13 relief as long as each of the unsecured claims are less than $ 269,250 and secured debts less than $ 807,750. 11 USC § 109 (e). Legal person or society, notChapter 13 debtor. Id
Individual files can not chapter by chapter 13 or any other party, whether during the last 180 days before the bankruptcy was dismissed as dlužníka deliberate violation of the court or to appear before the court to determine whether the decisions or have voluntarily dismissed after the creditor claims the exemption from the bankruptcy court to recover the property, which holds a lien on. 11 USC § § 109 (g), 362 (d) and (e).
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