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What Is Bankruptcy Article
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Looking at the Forms Bankruptcy Can Take
from:There are many types or forms bankruptcy can take. The US bankruptcy laws are designed to help individuals, businesses and even municipalities that are having severe debt problems that appear to be unsolvable within the current income or revenue levels. There are many reasons why this happens, but the reasons seem unimportant when buried under a mountain of debt. As many people discover when bills become backlogged, debt collection practices are harsh. The phone rings off the hook with collectors, and the late notices and penalty charges only seem to make the situation worse by the day. When you owe back taxes, the IRS is relentless when it comes to collecting the money.
The forms of bankruptcy are defined as chapters. The chapters were written to provide a specific form for filing when you are an individual, farmer, business, or municipality. Most people are aware of the availability of bankruptcy laws applicable to people and businesses, but even counties and cities can find themselves unable to pay their debt. Right now there is a current case in Alabama in which a county cannot pay its sewer bonds and is considering filing bankruptcy.
The first form bankruptcy takes for individuals is chapter 7. A chapter 7 is a liquidation bankruptcy in which your non-exempted assets are used to pay off as much debt as possible and the remaining balances are eliminated. A chapter 13 is called an individual debt adjustment form. In this case, an individual agrees to a court defined debt repayment plan.
Another form bankruptcy can take is chapter 11 which is a business reorganization plan. Under this chapter, the business asks for the debt to be adjusted in a way that makes it workable. The business can also ask for a total reorganization which is often what you read about large corporations doing in order to stay in business. Farm businesses, on the other hand, will file a chapter 12 when needing debt relief.
The other types of bankruptcies are chapter 9 for municipalities and chapter 15 for ancillary cases or cases which don't fit the other defined chapters. There are even bankruptcy laws that address service people who are unable to pay their debts because they are overseas serving their country.
It is easy to see how complex the bankruptcy codes really is and it is a work in progress too. Every day new court cases refine the code based on actual experiences. A good bankruptcy attorney will always stay current on the laws so that you are able to get the best advice possible. The goal is to help you or your business start over again financially, but in a way that is the best fit for your situation.
What Is Bankruptcy News
Filings detail Starr County candidate's bankruptcy, tax history - Monitor
Filings detail Starr County candidate's bankruptcy, tax history Monitor March 30, 2005: Jesus Maria “Chuy” Alvarez files for Chapter 7 bankruptcy with the US Bankruptcy Court in the Southern District of Texas. His original petition states that he had $215221.59 in debt. A Chapter 7 bankruptcy plan requires that the ... |
Record number of school districts in state face bankruptcy - Los Angeles Times
Record number of school districts in state face bankruptcy Los Angeles Times Pummeled by relentless budget cuts, a record number of California school districts are facing bankruptcy, state Supt. of Public Instruction Tom Torlakson announced Monday. The Inglewood Unified School District and 11 others -– most in northern ... |
Former AA Pilot Considers Himself Lucky for Retiring Before Bankruptcy - NBC 5 Dallas-Fort Worth
Former AA Pilot Considers Himself Lucky for Retiring Before Bankruptcy NBC 5 Dallas-Fort Worth By Kevin Cokely Retired American Airlines pilot Bill Collins feels lucky and fortunate that he took a lump-sum pension payout months before the airline filed for bankruptcy. Hundreds of pilots retired from American Airlines just before the company ... |
Short-term loan legislation labeled as 'bankruptcy by design' - phillyBurbs.com
Short-term loan legislation labeled as 'bankruptcy by design' phillyBurbs.com Opponents describe it as “bankruptcy by design” with banks in the state offering annual percentage rates as high as 369 percent on two-week or “payday loans.” State Rep. Gene DiGirolamo, R-18, voted in favor of the bill as a member of the House ... |
Site of State Fair of Virginia auctioned for $5.3M - Daily Press
 The Republic | Site of State Fair of Virginia auctioned for $5.3M Daily Press It also failed to curb spending, with State Fair president Curry A. Roberts and a handful of officers continuing to draw outsized salaries, according to documents in the bankruptcy case as well as SFVA's own filings with the Internal Revenue Service. State Fair of Virginia property, and Secretariat's birthplace, up for auction Tenn. company pays $5.67M for Va. state fair, site State fair and SportsQuest properties go on auction block Tuesday |
Bankruptcy claim survives against former Erie debt collector - GoErie.com
Bankruptcy claim survives against former Erie debt collector GoErie.com By ED PALATTELLA, Erie Times-News As he attempts to pay off his debts through bankruptcy, the former president of a now-defunct Erie debt-collection agency still must face challenges from the state Attorney General's Office. A judge in US Bankruptcy ... |
Can Bankruptcy Prevent a Foreclosure? - RealtyBizNews
 RealtyBizNews | Can Bankruptcy Prevent a Foreclosure? RealtyBizNews In order to explain this further we need to talk about the different types of personal bankruptcy a homeowner can file, how they work and how it could affect your position as an investor. The most common form of personal bankruptcy is known as Chapter ... Bankruptcy Law and Inheritance |
Young Buck Evicted from Mansion in Bankruptcy Sale - Reuters
Young Buck Evicted from Mansion in Bankruptcy Sale Reuters By Andrew Chow, JD at FindLaw.com With rapper Young Buck's eviction from his Tennessee mansion, the "Straight Outta Cashville" artist appears to be one step closer to emerging straight outta bankruptcy. Young Buck, 31, whose real name is David Darnell ... |