Some drastic changes have been made in the USA today in relation to the Bankruptcy Rules. Therefore, it is important that everyone should know what these modifications are just in case one finds themselves in a situation where they are forced to file for bankruptcy. Attorney Harry C Kaufman is one of the authority sites on this topic.
However, we need to discuss a little more about the various forms of bankruptcy for which we can now file before we look at the big changes that have occurred.
CHAPTER 7 – The most widely used of all the forms of bankruptcy one can sue for this is. A trustee is named after a person applies for Chapter 7, which will manage the property and properties of the person who has applied for bankruptcy. If they can, they can buy some of the properties of the individual so that they can be sold off and then the money received is used to pay back the creditors of the individual. A individual will always learn after filing a Chapter 7 that most of their debts have been cancelled in their entirety, although many do not know that not all kinds of debts are wiped out.
Chapter 11 – This form of bankruptcy filing is used most often by companies, but it may also be used by individuals. Sometimes, though, since this type of bankruptcy can prove to be costly and complicated, it is not one that many individuals like to use. The persons who are most likely to file Chapter 11 are mostly because they have debts that are above the limits set in a bankruptcy filing Chapter 13. In this unique bankruptcy, though, a corporation is able to continue to survive while actually protecting it from some (again, not all) of its debts.
Chapter 13 – A individual will create a proposed repayment plan through Chapter 13 to pay back all their creditors. Like a Chapter 7, the court will then appoint a trustee and it is this entity that will receive the fees from the person who requested a Chapter 13 and then pay them to the creditors. The primary role of the trustee appointed to a bankruptcy filing for Chapter 13 is to ensure that the person follows the repayment plan that has been placed in place at all times. Remember that your debts are not wiped out in this situation.
We have now looked at some of the forms of bankruptcy that can be filed and we are now trying to look at the changes in the bankruptcy legislation that have arisen. With regards to who may potentially file for bankruptcy using Chapter 7, the most important reform to take place is. The amendments in the legislation now prohibit the actual use of Chapter 7 by those who have a much higher salary.