View
220
Download
5
Category
Tags:
Preview:
Citation preview
Types of BankruptciesTypes of Bankruptcies
• Chapter 7Chapter 7 LiquidationLiquidation
• Chapter 9Chapter 9 MunicipalityMunicipality
• Chapter 11Chapter 11 Business ReorganizationBusiness Reorganization
• Chapter 12Chapter 12 Farm or Fisherman ReorganizationFarm or Fisherman Reorganization
• Chapter 13Chapter 13 Personal ReorganizationPersonal Reorganization
Chapter 7Chapter 7
• Eliminate DebtEliminate Debt
• Start Over FinanciallyStart Over Financially
Priority DebtPriority Debt
• NotNot Discharged Discharged
Secured DebtSecured Debt
• SurrenderSurrender DischargedDischarged
• Reaffirm Reaffirm Not DischargedNot Discharged
• Redeem Redeem Partially DischargedPartially Discharged
Secured DebtSecured Debt
• Surrender Surrender DischargedDischarged
• ReaffirmReaffirm NotNot DischargedDischarged
• Redeem Redeem Partially DischargedPartially Discharged
Secured DebtSecured Debt
• Surrender Surrender DischargedDischarged
• Reaffirm Reaffirm Not DischargedNot Discharged
• RedeemRedeem PartiallyPartially DischargedDischarged
Secured Obligation with a Secured Obligation with a Credit Credit UnionUnion
• Credit Union Debts are Cross-Credit Union Debts are Cross-CollateralizedCollateralized
• Unsecured debts are actually securedUnsecured debts are actually secured
• Must Reaffirm Must Reaffirm all or nothingall or nothing
Executory ContractsExecutory Contracts
• RejectReject DischargedDischarged
• AcceptAccept Not DischargedNot Discharged
Executory ContractsExecutory Contracts
• RejectReject DischargedDischarged
• AcceptAccept NotNot DischargedDischarged
UnsecuredUnsecured
• Unsecured DebtUnsecured Debt DischargedDischarged
AssetsAssets
PropertyProperty
--DebtDebt
--ExemptionsExemptions
May=Assets worth sellingMay=Assets worth selling
AssetsAssets
Property Value Property Value - - Debt Against the PropertyDebt Against the Property == EquityEquity
EquityEquity-- Costs of SaleCosts of Sale = Net Value of Property= Net Value of Property
Net Value of PropertyNet Value of Property
-- Exemptions Exemptions = Value Available for Creditors= Value Available for Creditors
AssetsAssets
Home FMVHome FMV
- Mortgage Debt- Mortgage Debt
- Cost of Sale (6% of Home FMV)- Cost of Sale (6% of Home FMV)
- - Homestead ExemptionHomestead Exemption
= Value Available for Creditors= Value Available for Creditors
Common Individual Common Individual ExemptionsExemptions• HomesteadHomestead $5 to 20,000$5 to 20,000• PersonaltyPersonalty $2 to 3,000$2 to 3,000• VehicleVehicle $2,500.00$2,500.00• Business ToolsBusiness Tools $3,500.00$3,500.00• Wedding RingWedding Ring $500.00$500.00• Living Room FurnitureLiving Room Furniture $500.00$500.00• BeddingBedding Unlimited Unlimited • ClothingClothing Unlimited (no Unlimited (no
Furs)Furs)• 401K401K UnlimitedUnlimited
Co-Signers and Co-ObligorsCo-Signers and Co-Obligors
• LiableLiable for Discharged Debt for Discharged Debt
Domestic Support Domestic Support ObligationsObligations• Child Support and Alimony - Child Support and Alimony - NotNot
DischargeableDischargeable
• Property Settlements - Property Settlements - Not AlwaysNot Always Dischargeable Dischargeable
Divorce DecreesDivorce Decrees
• Divorce Decrees are Divorce Decrees are notnot enforceable enforceable against Creditorsagainst Creditors
Bank AccountsBank Accounts
• Open a New Account Open a New Account beforebefore you File you File
Court Costs, Attorney Fees, Court Costs, Attorney Fees, and Expensesand Expenses
• Attorney Fees Attorney Fees $543.00$543.00
• CostsCosts $299.00$299.00
• ExpensesExpenses $123.00$123.00
Recap of Chapter 7Recap of Chapter 7
• Priority DebtPriority Debt– Not DischargedNot Discharged
• Secured DebtSecured Debt– Reaffirm, Surrender or RedeemReaffirm, Surrender or Redeem
• Executory ContractsExecutory Contracts– Accept or RejectAccept or Reject
• Unsecured Unsecured – DischargedDischarged
• Assets Assets – Non-exempt items may be takenNon-exempt items may be taken
Recommended