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Bankruptcy Chapter Types

manisha — Tue, 25 Nov 2008 19:45:03 +0000

Types of Bankruptcy Chapters?

The Federal Bankruptcy Code provides four types of bankruptcy chapters for filing.

Chapter 7 – Provides for your debts to liquidated
Chapter 11 – Provides for a business to reorganize their debts
Chapter 12 – Provides for Family Farmers with Regular Income
Chapter 13 – Provides for Individuals to reorganize their debts

To file any of these bankruptcy chapters you must first look at your personal of business situation. The most commonly used bankruptcy filing is Chapter 7 bankruptcy as this eliminates the majority of the debts.

The reason why chapter 7 is so popular is because the debtor’s assets are sold to provide access to instant cash for the bankruptcy trustee to pay as much of the debts to the creditors.

Chapter 11 is commonly used by corporate businesses, however in some instances can be used by individuals. This involves the business owner keep control the running of the business but must sell it assets to pays it’s creditors. Once the business has sold their assets it must then reorganize the business to start a fresh. All rights and interest that the owner had with the original business now cease to exist and must form new ones.

Chapter 12 is exclusively for family farmers who are still running their business but are unable to meet their debts with the annual income that is coming in to the business. Family farmers are affectively requesting relief from the courts on the enormous debts that the business normally has.

Chapter 13 provides for individuals that do not meet the means test of Chapter 7, but who are still struggling financially. The individual is normally still working or has some sort of income, which they can use to repay some of their debt. A repayment plan will be drawn up to show how much they will pay on a monthly basis and for how long.

How to File Bankruptcy Forms?

manisha — Wed, 19 Nov 2008 20:29:58 +0000

How to file for bankruptcy?

Chapter 7 bankruptcy is the easiest out of all the types of bankruptcy to file. It is becoming increasingly popular for people to carry out their own bankruptcy filings by purchasing do-it-yourself bankruptcy kits.

What are the different types of bankruptcy?

There are a number of bankruptcy chapters that can be used for different types of applicants.

Chapter 7 Bankruptcy – for individuals and/or businesses to liquidate all eligible debts
Chapter 9 Bankruptcy – for a municipality bankruptcy
Chapter 11 Bankruptcy – for a business or in some circumstances for an individual who wants to reorganize debts
Chapter 12 Bankruptcy – for family farmers and family fisherman
Chapter 13 Bankruptcy – for people who are unable to use chapter 7 and who must reorganize their debt with a repayment plan
Chapter 15 Bankruptcy – for international cases

It can be as easy as filing legal bankruptcy online by using affordable legal document providers. They will arrange to not only complete the forms for you but they will also submit your bankruptcy forms in to the relevant bankruptcy courts.

You will need to gather a number of documents before you can file for bankruptcy the first being your certificate showing you have carried credit counseling in the last 180 days prior to the date of bankruptcy filing. You also need to show your federal tax return as it is not always to possible to get rid of this debt. Lastly your wage slips for the last 60days if you have been working.

As I have said before you are able to file without attorney bankruptcy and this can be done by even using downloadable forms. However you can use bankruptcy attorney experience with out the attorney prices. Click here to find out more Legal Documents @ Lawyer-Free Prices

Legal Brain | Legal Document Purchase » types of bankruptcy

Bankruptcy Chapter Types

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