Fremont Bankruptcy Attorney Discusses Lesser known Bankruptcy
Fremont Bankruptcy Attorney Discusses Lesser known Bankruptcy
Most people are familiar with Chapter 7 Bankruptcy and a Chapter 13 Bankruptcy but what about the other Chapters? A Chapter 7 Bankruptcy is called a “Liquidation” because the Court will seize the debtors assets and liquidate them to pay off the creditors. (Ironically, most Chapter 7 candidates don’t have any assets worth seizing.) A Chapter 13 Bankruptcy is called an “Adjustment of Debts of an Individual with Regular Income” because it is designed to restructure the debtor’s debt into a monthly payment plan that the Court approves. This type of bankruptcy will allow a debtor to keep a valuable asset like a house.
A less common bankruptcy is a Chapter 11 Bankruptcy which is called a “Reorganization.” A Chapter 11 Bankruptcy is a long process often used by commercial enterprises in an effort to continue to operate a business and repay creditors. Under the Chapter 11, the debtor can terminate contracts and leases, recover assets, and rescale it operations in order to return to profitability.
A Chapter 12 Bankruptcy is entitled “Adjustment of Debts of a Family Farmer or Fisherman with Regular Annual Income.” This bankruptcy is meant for farmers and fishermen. The different Bankruptcy is needed because these businesses have their cyclical business nature, government regulations, and tax consequences.
A Chapter 9 Bankruptcy is entitled “Adjustment of Debts of a Municipality.” These bankruptcies are reserved for “municipality” or towns, villages, counties, taxing districts, municipal utilities, and school districts. These are extremely complicated bankruptcies and rare for obvious reasons.
A Chapter 15 Bankruptcy is entitled “Ancillary and Other Cross-Border Cases.” These bankruptcies are meant for a debtor or property that is subject to the laws of United States and one or more foreign countries.
If you are looking for a bankruptcy attorney or wish to find out which kind of bankruptcy you qualify for, call us at Sagaria Law for an appointment at 1-800-941-6730.
