Bankruptcy law describes the process by which individuals and entities who cannot pay their debts can receive relief from these obligations. In most cases, bankruptcy is imposed on people or entities by a court order, but in some cases, it may be initiated by the debtor. Here are the facts about bankruptcy law and what you should know about filing for this type of relief. Listed below are some examples of situations in which bankruptcy may apply. If you are unsure of whether you can file for bankruptcy, consult a professional attorney for more information.
Chapter 13 bankruptcy
Under Chapter 13, you can discharge both secured and unsecured debts. Secured debt is debt that uses collateral to ensure repayment. Unsecured debt, on the other hand, is debt that you do not own or have secured in any way. Examples of unsecured debt include medical bills and credit card debt. Usually, Chapter 13 plans will pay off the debts that are due but not secured in any way. For some people, they may not have any disposable income to pay off these debts.
There are strict requirements for filing Chapter 13 bankruptcy. Your total secured and unsecured debts cannot exceed $1184200 and $394725 respectively. Moreover, you must have resided in the state for at least two years before you can file for bankruptcy. This will protect your home and other property from repossession. Lastly, you cannot file for Chapter 13 bankruptcy if you have been living in the same place for the past 2 years.
When applying for a Chapter 13 bankruptcy plan, you must determine your income and monthly expenses. If you make more than the state’s median income, you must qualify. Otherwise, you can qualify if your income is below this amount. In the event you qualify for Chapter 13 bankruptcy, you must make payments to your creditors over a three to five-year period. The trustee will hold these payments until you take action in court. Once you’ve made the payments, minus the trustee’s administrative fees, the trustee will distribute them to your creditors.
The discharge of chapter 13 debts is a process that allows the debtor to receive a discharge for all of his debts. However, there are certain debts that are not discharged under this process. These include debts referenced in 11 U.S.C. SS 1328, alimony, child support, and most government-funded educational loans. Additionally, debts arising from death, restitution, or criminal fines are not discharged under chapter 13 bankruptcy law.
While filing for chapter 7 bankruptcy allows you to liquidate your assets, Chapter 13 bankruptcy allows you to set up a repayment plan for your unsecured debts. During this time, you will repay your creditors according to a set repayment plan. Your monthly payments to the trustee are based on your income and the value of your non-exempt assets. During the repayment period, you cannot contact your creditors directly. This means that you won’t be able to have a contentious conversation with them.
Chapter 15 bankruptcy
Chapter 15, a part of Title 11 of the United States Code, deals with the jurisdiction of courts in certain bankruptcy cases. In certain instances, a representative of a corporate bankruptcy proceeding outside the United States may obtain access to U.S. courts to file the case. In some cases, the bankruptcy court may also have jurisdiction over other international cases. This is why it’s crucial to know the specifics of Chapter 15 bankruptcy law and its application to your case.
First, Chapter 15 gives foreign creditors the right to participate in a U.S. bankruptcy case. As a result, it prohibits discrimination against these creditors. However, certain foreign government or tax claims may be governed by treaty. Nevertheless, the bankruptcy court must give notice of these foreign creditors of their right to file a claim. Therefore, you should understand your rights and obligations under the law of your jurisdiction before filing for chapter 15 bankruptcy.
Second, Chapter 15 addresses how a foreign debtor can file for bankruptcy in the United States. A foreign company that has filed for bankruptcy in its home country must file a chapter 15 bankruptcy petition in the United States. In addition, a foreign company must file for bankruptcy in the US if it has assets in the United States. A representative of a foreign company may file the petition for the company and provide the necessary documents. After a hearing, the bankruptcy court will recognize the foreign bankruptcy proceeding.
A chapter 11 bankruptcy case typically involves a committee of creditors. The committee consists of representatives from the debtor’s unsecured creditors. Once approved by the bankruptcy court, the Committee’s fees and expenses are covered by the debtor’s estate. It is important to understand that a chapter 11 bankruptcy case involves a debtor’s plan and how it will affect the creditors’ interest. The debtor’s creditors must approve the plan before it can be executed.
The debtor in possession (DIP) is an attractive aspect of a Chapter 11 bankruptcy case. In this situation, the debtor can continue to run the business while the bankruptcy case is ongoing. This allows the current management to maintain contact with customers and vendors. Additionally, the debtor is free to engage in ordinary course transactions without the involvement of the court. However, any transactions outside of the ordinary course of business must be approved by the court after notice to the parties in interest and an opportunity to object.
Chapter 12 bankruptcy for family farmers
If your debts exceed your income, you can file for bankruptcy under Chapter 12. The court will confirm your plan if it meets the requirements of the Code. Secured creditors receive a payment equal to their collateral’s value. Unsecured creditors do not receive a payment, but will be paid from the debtor’s “disposable income” after paying personal expenses. During your plan, you must bring any past-due payments current.
The key to successfully filing for Chapter 12 is to create a plan that is feasible. The plan will outline fixed payments to the Chapter 12 trustee and may include a sale of burdensome farm property. While you don’t have to repay all of your unsecured debt, you must commit to pay projected “disposable income” for the plan payments over three to five years. ‘Disposable income’ means income that is not necessary to run a farm.
While many other types of bankruptcy can cause you to lose your property, Chapter 12 offers more flexibility for farmers. Because of its specificity, Chapter 12 allows debtors to take into account past production expenses and income when reorganizing their debts. Furthermore, a farmer who files under Chapter 12 can make seasonal payments instead of monthly ones. Moreover, he or she can sell farmland and farm equipment without losing it due to liens.
In addition to the benefits of the SBRA, a farm or fisherman can also file under Chapter 12. This is a more flexible option than filing under Chapter 11 because it eliminates most barriers to reorganization. Additionally, the bankruptcy process is much less complicated than the SBRA, which is geared toward large corporations. A small farm should file under Chapter 12.
To file for bankruptcy under Chapter 12, a family farmer must be involved in a farming operation and earn more than $350,000 per year. Despite the benefits of Chapter 12 for farmers, the eligibility cap is based on a low number of farms and their gross income. A family farm must make at least 50% of its income from farming within two or three prior tax years. However, larger farms are more likely to qualify for the protection of a Chapter 11 bankruptcy.
Chapter 15 bankruptcy for foreigners
The US Bankruptcy Code permits a foreign company to file for bankruptcy. If the foreign company wishes to file under Chapter 15 of the Code, the foreign company must first begin an ancillary proceeding to obtain recognition of its case. This ancillary proceeding must be commenced by a foreign representative. In other words, the foreign company must file a petition to have the foreign proceeding recognized. However, this petition is only effective if the foreign company has been operating in the US for several years.
In addition, foreign nationals can file for Chapter 15 bankruptcy under the Bankruptcy Code. The U.S. Bankruptcy Court permits foreign creditors to participate in the bankruptcy proceedings. In fact, the bankruptcy judge is expected to respect the foreign court’s rules and to comply with its decisions. Moreover, foreign creditors may qualify for additional relief through Chapter 15 bankruptcy. But, a foreign national should remember that the United States court cannot enforce foreign bankruptcy laws in the same manner as its domestic counterpart.
While the main bankruptcy proceeding occurs in the country of the foreign filer, the foreigner can also begin a chapter 15 bankruptcy case in the U.S. Generally, Chapter 15 bankruptcy for foreigners is filed in the U.S. Bankruptcy Court for the Southern District of New York. This court encourages cross-border bankruptcies to protect the interests of all parties. When filing for chapter 15 bankruptcy for foreigners, it is important to know the requirements and procedures for filing the petition.
Although the law differs from chapter to chapter, the court in Barnet, UK, found that Section 109(a) applies to foreign debtors. It found that foreign debtors can file under Chapter 15 but must also satisfy the requirements of the foreign law’s definition of “debtor.” Furthermore, the court noted that the debtor’s property in the U.S., in the form of undrawn retainer, satisfied the eligibility requirements. The court stated that a preclusive reading of the section is incompatible with the explicit instruction of Section 103(a) to apply Chapter 1 to chapter 15.
The main purpose of Chapter 15 bankruptcy for foreigners is to improve cooperation between U.S. and foreign courts by providing effective mechanisms for cross-border insolvency. The statute was introduced in 2005 and has seen a dramatic increase since then. In 2005, there were only six cases filed under Chapter 15. Today, there are more than 130 filings each year, an increase of 85 percent from the previous five years. But there is still a long way to go to establish the rights of foreign creditors.