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Processes and Chapter 11 bankruptcy in the U.S. through our member firms

In the United States Code (the Federal Bankruptcy Code), there are four bankruptcy filings:
Chapter 7 - Liquidation
Chapter 11 - Reorganization
Chapter 12 - Adjustment of debts of a family farmer with regular annual income
Chapter 13 - Adjustment of Debts of an Individual with Regular Income
The presentation generally depends on the financial situation of the person. The most common presentation is Chapter 7. Companies, marriages and people are allowed to file Chapter 7.
A Chapter 7 debtor essentially starts again, hoping to get to have a clean financial record. Basically what happens is that once this presentation is launched, an administrator or trustee is appointed to handle the sale of the debtor's assets. This does not necessarily mean that everything the person owns is for sale. Both federal and state laws allow certain exemptions, which means is that the debtor may keep a property as your primary residence or personal items such as clothing. Once the debtor's assets are liquidated, the trustee pay some creditors in proportion to the money raised. Obviously, not all creditors receive the money from these operations, so many of these financial obligations are "forgiven", or discharged. Once someone has filed for bankruptcy under Chapter 7, he or she can not file again for seven years, and debts were not forgiven in an earlier submission will not be discharged in the following presentation.
It is important to note that there are certain debts that can not be given to alta.como Alimony, child support and taxes can not register under any bankruptcy, and student loans are rarely given High. Thus, a debt falls into these categories, you might be better filing Chapter 13.
Chapter 12 and Chapter 13 are basically the same file, except that Chapter 12 is for family farmers and Chapter 13 is for other people. As long as you have a stable and reliable income, less than $ 269,250 in unsecured debt and less than $ 807,750 in secured debt, you can file Chapter 13. Once the claim is filed, the debtor is assigned an administrator. The debtor and the trustee may file a proposed repayment plan. The court decides whether to accept or modify the plan or another plan dictates payment in full. Once the plan is decided, which may last three to five years.
You may be wondering why anyone would file for Chapter 12 or 13 instead of Chapter 7. There are a couple of reasons for this:
Presentations Under Chapter 12 and 13 debtors do not have to liquidate their assets - they actually get to keep everything, not just the items that meet the statutory exemption.
In most cases of Chapter 12 and 13, the deudorpaga only a percentage of what he or she really should - it is sometimes very.
Chapter 11 bankruptcy is similar to Chapter 13. The main difference is that there is no limit to the amount of money owed by the debtor. It was originally designed for large corporations, individuals can now file Chapter 11 also.
Filing for bankruptcy is not to be taken lightly. It affects your credit rating for many years.
Gil & Roa lawyers together with associated firms in the United States will effectively support the process of decision making as presented and in every stage of the process.