A bankruptcy case begins with the creditor filing a petition in court after which the debtor is summoned. This petition should always be backed with a proof. In cases where one objects to the claims, he can move to court to seek a dismissal of the objection. This will require the creditor to produce proof that indeed his claims are true.

There are three modes of debt collection. The first is where the pledged property is seized and sold at an auction by the DCO. The second mode is where the unsecured property is seized and auctioned in a bid to pay the outstanding debt. This will only work if the debtor is not a registered commercial entity. The last mode deals with the registered commercial debtor.

In cases where the assets proceeds are not enough to cover the overall debt but can cover at least the cost of the case, then the officer in charge of the case publishes a bankruptcy suit in the Official Gazette of Commerce to ask for their proof of claims. This is followed by several court proceedings to approve the claims. Once the claims are validated, the assets are no longer contested. A meeting is held in which the liquidation method is determined. Liquidation in this case is through an auction held in the presence of the two parties and the DCO or direct sale of the assets.

Once the liquidation process is over, the proceeds are discharged to the creditors according to their ranks. In cases of bankruptcy cases against businesses, workers are given the first preference. In case some of the creditors still remain unpaid, they receive certificates to prove this but they cannot continue with the insolvency case against the debtor unless they confirm that he has acquired new assets.

What are bankruptcy exemptions, and how are they determined? First off, these are only for individuals filing for bankruptcy and not businesses, and they are something that allows you to keep up your standard of living by protecting some of your personal possessions from being taken by the court to pay off your debt.

As I’m sure you are aware, in bankruptcy what often happens is that the court will take away your possessions to liquidate them and pay off your debts. Knowing what the court can take away and what they can’t is very important to determining whether or not you should file for bankruptcy.

If they can take away basically everything you own, then obviously filing is a bad decision. However, if a lot of your things fall under bankruptcy exemptions, then it might be a smart thing to file, and get rid of your debts so that you can start over.

The way it works is, you can sometimes choose between the state and national bankruptcy exemptions, in the case of states who allow national exemptions. Each have their own rules on what can be considered an exemption and what cannot be.

However, often times, you must go with the state exemptions, as certain states (the majority, actually) don’t allow national exemptions to apply to them.

It’s a long story, but for now that’s the way it is, and I will leave it at that. If you live in a state that allows national bankruptcy exemptions, you have to decide on which rules you want to go with, and can’t just take portions of each that apply to you. You have to choose one or the other.

This is basically how it works. First, when you claim something as a bankruptcy exemption, you have to show the value of it right now, and not when you first obtained it, since this is obviously the amount the court will get for it by selling it.

There are only certain things that can be claimed, of course, otherwise why not just keep everything? Since each state is different, for the purpose of this article I will cover the more prominent of the federal exemptions.

First, the equity of the main residence you live in is exempt for up to $17,400, and you can use this money to live somewhere else once you lose your current place. Pension and retirement plans can also be claimed should you claim them, life insurance that is at least $9300, and also unemployment benefits can’t be taken as well if you claim them.

There are quite a few other smaller things, and of course, your lawyer will be able to give you an extensive list, so that you can determine what you will have to lose and what you can keep. Remember, this only applies to chapter 7 bankruptcy, as with chapter 13, the individual follow a court ordered payment plan, and you aren’t discharged of your obligations, as you are with chapter seven.

Your lawyer will be able to help you with bankruptcy exemptions, so while this is an introduction to the topic, it is no substitute for a competent attorney who can explain to you the ins and outs of this somewhat complicated topic.

Going bankrupt is something that is hard to imagine happening to you. When bankruptcy does occur though, you have some options that you can try. For these bankruptcy options to work you will need to consider bankruptcy filing. The options will include chapter 11, 13, and 7.

Each of these types of bankruptcy filing allows you a breathing space while you try to sort out your financial mess. The most well used bankruptcy claims are chapters 13 and 7. In these two options you will be able to talk with your lawyer and find the best method for paying off your payments.

In general chapter 7 and chapter 13 bankruptcy claims ensures that you can’t be forced to pay further debts once you have placed a bankruptcy filing. For your creditors to stop contacting you it is essential that you file a bankruptcy claim.

Once the bankruptcy filing has been accomplished your payments will commence. These payments will be made depending on the type of bankruptcy that you have filed for. As both of these bankruptcy filings are very different it is best if you understand what happens when you file bankruptcy claims.

In the chapter 7 bankruptcy filing you agree to liquidate all of your disposable and non-exempt assets. These assets, money, and property are turned over to a court appointed bankruptcy trustee. This individual will start the process of turning your disposable assets into cash. Once the amount of money that you owe has been found, the trustee will distribute them amongst your creditors.

You should make sure that when you are preparing for bankruptcy filing that you have given your lawyer a list of all of your creditors so that the proper payments can be finalized.

This step in bankruptcy filing will wipeout all of your debts, excepting for certain non-dischargeable debts. You will however need to discuss with your lawyer the best ways to go about bankruptcy filing for chapter 7 and in some cases chapter 13.

The chapter 13 bankruptcy filing will allow you to make arrangements with your lawyer to pay off these payments as best as you can. The lawyer will examine your bankruptcy case history before you can begin the bankruptcy filing process. Once the filing has been finalized you have a period of 5 years to pay off your debt.

Bankruptcy filing is the best way to make sure that your bankruptcy claim is following in the proper path. Your lawyer should be able to advise you on the best route of bankruptcy to file for.

There are different types of bankruptcy claims that various people and businesses go through. These bankruptcy claims will affect different people in various ways. This is especially true for the investors and stockholders of a company. When a company files for corporate bankruptcy there are certain proceedings that are carried out before any money is distributed among the various people who have a stake in the company.

The first step that is involved for a company which is deciding on a corporate bankruptcy is the course of action that they can take. This action can involve filing a chapter 7 bankruptcy claim. In the chapter 7 corporate bankruptcy claim all of the company’s assets are liquidated.

Once the assets have been turned into cash the various creditors will be paid off first. Once they have been paid the secured creditors will be paid their share of the remaining credit money. The rest of the money will then be paid off according to the terms of the claim laws.

The other course of action that can be taken in corporate bankruptcy is to file for chapter 11. With this bankruptcy action you are not liquidating your entire assists. Instead you are looking at means and ways of paying your creditors within the legal bounds of your financial ability.

In chapter 11 of the corporate bankruptcy you claim full responsibility of the substantial losses that have been incurred. You have your lawyer draw up a reasonable course of action to reorganize your entire company for maximum profit making. This plan will be submitted to court.

The courts will appointee a committee to oversee the reorganization of the company. You should understand that in this corporate bankruptcy action, the committee is taking various courses that pay your debts off to the many creditors who are waiting for repayment.

At any time that you are unable to make a substantial profit or there does not seem to be any signs of progress, the committee will begin dissolving the company’s assets in order to pay the creditors. Therefore you might want to talk with your lawyer if you are unsure about the feasibility of this course.

With this bankruptcy claim you agree to a 5 year period of time in which you will pay off the various credit debts that you have incurred. Once you have filed for chapter 13 bankruptcy the court will issue an automatic stay order.

During this stay order you will need to start repaying your loans using an amount that you can afford to pay. Sometimes in the corporate world declaring bankruptcy might seem like financial suicide but it can be the means of re-starting your business newly. With corporate bankruptcy you have different options that you can use to rebuild your business.

Many U.S. citizens turn to filing bankruptcy in effort to stop foreclosure or reduce their debt load. While filing for personal bankruptcy can offer financial relief, new bankruptcy laws enacted in 2005 have made it considerably more difficult to obtain court protection.

Filing bankruptcy today requires the services of a qualified bankruptcy attorney. The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) placed strict guidelines on debtors. In the past, many people filed for Chapter 7 bankruptcy, which dismisses all debts and allows debtors to obtain a fresh financial start.

BAPCPA requires debtors to pay a portion of their debts whenever possible. The amount of debt is determined through the ‘means’ test; a financial tool which compares debtors income to their states’ median income level.

When debtors’ income falls below the median income level, they may qualify for filing Chapter 7. Otherwise, debtors will be required to file Chapter 13 bankruptcy and establish a repayment plan.

Bankruptcy repayment plans typically last three to five years and requires debtors to contribute a substantial portion of disposal income. Debtors are prohibited from incurring new debt for the duration of the repayment plan.

If debtors are unable to adhere to repayment terms, creditors can petition to court to request dismissal of the bankruptcy. When debtors fail out of bankruptcy, all protection from the court is lost and creditors are allowed to commence with collection proceedings; including foreclosure.

When individuals file bankruptcy to stop foreclosure, it is crucial to remain current with chapter 13 payments. If debtors fail out of bankruptcy, the foreclosure process can commence where it left off when the bankruptcy was filed. For example, if the foreclosure was scheduled seven days prior to the bankruptcy petition, it can commence at seven days; leaving debtors little time to locate suitable living quarters.

Additional stipulations of BAPCPA require debtors to undergo credit counseling through an approved U.S. Trustee Program agency a maximum of six months prior to filing. Once counseling is completed, debtors must present a certificate to the bankruptcy court in order to obtain approval.

When filing bankruptcy, debtors petition the court in the district of their primary residence. Shortly thereafter, a 341 creditor meeting is held to develop the repayment plan. The creditor meeting allows debtors to discuss payment options with creditors or their legal counsel.

Bankruptcy experts recommend consulting with at least three attorneys prior to making a commitment. Most law firms offer complimentary consultations to determine if they are suited to represent the client. Filing bankruptcy is a stressful and emotional process, so it is important to work with a lawyer whose personality is suited to yours.

Filing bankruptcy can have far-reaching effects and should only be entered into when all other debt reduction options have failed. These might include budgeting, credit counseling, debt consolidation, or debt settlement.

It is important to understand the pros and cons of filing bankruptcy. Conduct research online or consult with professionals to determine if bankruptcy is the best choice. Seek out bankruptcy alternatives that provide the same result without the severe financial consequences.