Anderson Bankruptcy Lawyer Quotes Chapter and Verse

December 14, 2012 12:32 pm Published by

Over the years that I’ve been a debt consolidation lawyer, I’ve been fond of saying “Bankruptcy comes in cans.”  That’s because of all the positive things bankruptcy CAN do to help turn around some really difficult financial situations.  From a legal standpoint, though, bankruptcy comes in chapters.

Why chapters?  The different types of individual bankruptcy in Indiana, as well as the different types of Indiana business bankruptcy, are each named after the chapter of the U.S. Bankruptcy Code that talks about that type of bankruptcy.

At the five Zuckerberg bankruptcy law offices in central and southern Indiana, where we’ve offered Indiana bankruptcy help to more than 30,000 individuals, couples, and businesses, the starting point usually is either bankruptcy Chapter 7 or Chapter 13 bankruptcy law.

 

 

Bankruptcy Chapter 7

Who files? Individuals, couples, partners in small business.

What goes on? For many people filing a Chapter 7 bankruptcy, the court will give them a discharge of some or all of the debt within four to five months after the filing date. During those months the trustee takes control of any property, sells whatever assets the person is not allowed to keep, and uses the money to pay creditors. In almost all cases the debtors lose little to no property. In the meantime, any wages the bankrupt person earns after the filing are his or hers to keep towards living expenses.
 

Bankruptcy Chapter 9

Who files?  Municipalities or public agencies.

What goes on? The bankruptcy buys time for the municipality to negotiate with its creditors, to possibly liquidate some assets, and to reorganize.

 

Bankruptcy Chapter 11

Who files? Business corporations.

What goes on? As one of my Columbus bankruptcy lawyer colleagues explains, the creditors and the company officers try to work out a plan to either keep the company going or to shut it down.  Merger talks may happen, and some assets may be sold through an auction.
 

Bankruptcy Chapter 12

Who files? One of my Anderson bankruptcy attorneys explains that this form of bankruptcy in Indiana is specifically designed for farmers, allowing them to pay some of their debts out of future revenues.

 

Bankruptcy Chapter 13


Who files? Individuals, couples, partners in small business.

What goes on?  Chapter 13 bankruptcy law can be referred to as a wage earner's plan of bankruptcy, because it is meant for people who have regular income coming in that they can use to make installment payments to their creditors through a three to five year debt repayment plan.  My Richmond bankruptcy attorney colleague often helps clients who need to save their home from foreclosure, and one of the “cans” of Chapter 13 bankruptcy law is that it can be used to free up money to keep up payments on a home.

Bankruptcy comes in “cans” and in chapters, and designing exactly the right plan for each client's situation is what my work as an experienced lawyer for bankruptcy is about.

 

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This post was written by Mark Zuckerberg

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