Bankruptcy Filing Under the New 2005 Bankruptcy Code

April 21st, 2010 by admin

Under the new 2005 bankruptcy code, the trustees in Chapter 7 or Chapter 13 bankruptcy cases are first appointed by the bankruptcy court as interim trustees, then if the creditors committee does not come up with another alternative they prefer, the court-appointed trustee begins handling the bankruptcy filing. When an individual decides to file for bankruptcy, they need to decide which chapter would be best for them to file. The bankruptcy laws are different for Chapter 7 and for Chapter 13. It is important to remember to include every unsecured debt owed, and list every asset you own especially under Chapter 7 bankruptcy. Every state in the United States of America has specific bankruptcy exemptions, but in most states usually most home equity, home furnishings, your car and business tools will be exempt. It doesn’t make sense to take away the only property someone might have that helps them survive. Other possessions such as antiques to musical instruments are items if they have a substantial value trustees see these as the items that could be auctioned for a substantial return to give them money for creditors. When looking at filing bankruptcy under Chapter 13, the process is very much the same as with Chapter 7 except that no assets are sold. An individual in a Chapter 13 Bankruptcy gets set up on a payment plan and payments are made until the end of a certain amount of time, usually 3 to 5 years, and at that time any remaining debts that are unpaid will be discharged.

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