Is money tight?
Are the bills pilling up?
Are creditors calling?
Chapter 7:
Straight bankruptcy
Discharge debts
May reaffirm certain debts (homes, cars, etc.)
Chapter 11:
Corporate reorganization
Extensive debts or property
Normally used for corporations, but individuals can file if debts are over $1 million
Chapter 12:
Reorganization for family farmers
Chapter 13:
Personal reorganization
Minimum 3 year to maximum 5 year repayment plans
Make monthly payments to bankruptcy trustee
STOP FORECLOSURE - cure
arrearage on home mortgage
STOP REPOSSESSION -
restructure car notes
STOP WAGE LEVY -
repay IRS
repay numerous secured
creditors
pays some distribution
to unsecured creditors
may use to continue to
operate small business
may use (with 100%
repayment) if filed Chapter 7 in last 6 yrs
must file a 13 if there is any substantial excess income over monthly living expenses
Information needed for preparing bankruptcy schedules:
-
List of ALL creditors, including any that you desire to continue to pay (i.e. house mortgage, car loans, etc) with creditor’s name, account number, complete mailing address and the total amount owed.
-
Estimated monthly budget- on-going monthly income and expenses (without any credit card repayment) along with copies of current payroll stubs and copies of last two years federal tax returns.
-
Itemized list of household goods and appliances, with estimated current value of each item (normally use “garage sale” values).
