Such a plan may compete with a plan filed by another party in interest or by the debtor. This chapter discusses six aspects of a chapter 13 proceeding: Railroad reorganizations have specific requirements under subsection IV of chapter 11, which will not be addressed here. When "cash collateral" is used spentthe secured creditors are entitled to receive additional protection under section of the Bankruptcy Code.
Most lienshowever such as real estate mortgages and security interests for car loanssurvive. For businesses[ edit ] When a troubled business is unable to pay its creditors, it may file or be forced by its creditors to file for bankruptcy in a federal court under Chapter 7.
The Chapter 13 Debt Discharge The Chapter 13 Debt Discharge A Chapter 13 debtor is entitled to a discharge upon completion of all payments under the Chapter 13 plan so long as the debtor: Another aspect to consider is whether the debtor can avoid a challenge by the United States Trustee to his or her Chapter 7 filing as abusive.
In an individual case, failure of the debtor to pay post-petition domestic support obligations constitutes "cause" for dismissal or conversion. Despite their potential non-dischargeability, all debts must be listed on bankruptcy schedules.
This method appeals to those who cannot afford the higher cost of bankruptcy attorneys and at the same time do not want the hassle and uncertainty of self-prepared document templates and software.
For example, secured creditors will have taken less risk, because the credit that they will have extended is usually backed by collateral, such as assets of the debtor company.
Generally, any creditor whose claim is not scheduled i.
Chapter 13 also contains a special automatic stay provision that protects co-debtors. Generally, the debtor, as "debtor in possession," operates the business and performs many of the functions that a trustee performs in cases under other chapters. The ordinary expenses of the ongoing business, however, continue to be paid.
In any event, if the debtor fails to make the payments due under the confirmed plan, the court may dismiss the case or convert it to a liquidation case under chapter 7 of the Bankruptcy Code.
The Chapter 13 Discharge The bankruptcy law regarding the scope of the chapter 13 discharge is complex and has recently undergone major changes. Perhaps most significantly, chapter 13 offers individuals an opportunity to save their homes from foreclosure.
If the obligation underlying the secured claim was used to buy the collateral e. A corporation exists separate and apart from its owners, the stockholders.
As long as the stay is in effect, creditors generally may not initiate or continue lawsuits, wage garnishments, or even make telephone calls demanding payments. Other changes[ edit ] Decreased the number and type of debts that could be discharged in bankruptcy.Chapter 7, Title 11, United States Code.
Jump to navigation Jump to search (Bankruptcy Code) governs the process of liquidation under the bankruptcy laws of the United States (in contrast, Chapters 11 and 13 govern the process of reorganization of a debtor in bankruptcy). In a Chapter 7 case.
Individual Cases (12/1/) Page 1 of 3 INSTRUCTIONS FOR FILING AN INDIVIDUAL BANKRUPTCY CASE Chapter 7, Chapter 11, Chapter 12 and Chapter In the case of individuals, chapter 11 bears some similarities to chapter For example, property of the estate for an individual debtor includes the debtor's earnings and property acquired by the debtor after filing until the case is closed, dismissed or converted; funding of the plan may be from the debtor's future earnings; and the plan.
has not received a discharge in a prior case filed within a certain time frame (two years for prior Chapter 13 cases and four years for prior Chapter 7, 11 and 12 cases); and has completed an approved course in financial management.
Chapter 13 - Bankruptcy Basics. or fails to make required tax filings during the case. 11 U.S.C. §§ (c) and (e),The Chapter 13 Discharge The bankruptcy law regarding the scope of the chapter 13 discharge is complex and has recently undergone major changes. Therefore, debtors should consult competent legal counsel prior to.
Chapter 11 Bankruptcy: An Overview. How a Chapter 11 Case Begins and Who Can Be a Chapter 11 Debtor. When possible, however, most individual debtors elect to file bankruptcy under Chapter 7 or 13 to avoid the time, cost, and risk involved in Chapter 11 proceedings.
Inclose to million Americans filed bankruptcy under Chapters.Download