Chapter 7 Bankruptcy

Bankruptcy is defined as a legally declared inability or incapability of an individual or organization to pay their creditors. Personal bankruptcy is an option limited to individuals who are bankrupt and does not include organizations or companies.

The main objective behind filing a bankruptcy is to absolve financial debts and make a fresh start. Individuals can file for personal bankruptcy under chapter 7 of the bankruptcy act after they take a credit counseling course, completed an approved financial management course before discharge and after passing the ?means test?.

Debtors filing Chapter 7 or Chapter 13 bankruptcy must present a copy of a tax return or transcription of a tax return of the period for which the return was most recently due to the trustee, at least seven days before the 341 meeting

The documentation required for filing for personal bankruptcy includes a list of creditors, detailed description of current income, current personal expenses, and an identification photograph. Under the new bankruptcy laws a person also has to submit a certificate of counseling and a proof of income for the last six months. Proof of income includes copy of paycheck, a pay stub, bank statements, rental agreements, books and records, or any other evidence of income a person has received within six months of filing. The last 60 days worth of paycheck stubs must also be filed along with the bankruptcy paperwork in the bankruptcy court.

A statement of monthly net income and any anticipated increase in income after the filing should also be mentioned. All the tax returns or transcripts for the previous four (4) tax years are to be submitted. Tax returns that were not filed during the bankruptcy case will also be needed. Other documents include copies of deeds, mortgages and titles to vehicles, copy of the individual?s automobile financing agreement and any creditor?s mail that the person has received within the last 90 days before filing. Copy of security agreements with secured creditors and copies of divorce decrees, property settlement agreements, separation agreements and child support orders also have to be included along with an application for personal bankruptcy. It is always advisable to contact an attorney before filing for personal bankruptcy.

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Product Description
Whether you filed bankruptcy several years ago or last week, this book will show you how to make a dramatic and lasting recovery. Stephen Snyder and his wife, Michele, each had their Chapter 7 bankruptcy discharged in 1993. They were both so cash poor at the time that they had to borrow money from their families to file. Then, within months, obtained bank loans, major bank cards, start-up capital for a small business, and more – all using mainstream credit and witho… More >>

Credit After Bankruptcy: The easy-to-follow guide to a quick and lasting recovery from personal bankruptcy

Similar to an LLC, when corporations liquidate under chapter 7 of the U.S. bankruptcy law, it includes only the business assets. The owner is totally exempt from personal liability in regards to any corporate debt, excluding the loss of value of any shares. Creditors are repaid from the proceeds of liquidation. Before equity receives anything, debts must be paid in full.

Chapter 11 of the U.S. bankruptcy law states that all assets are kept by any organization that reorganizes and continues operation, while most creditors receive partial payment. Investment decisions become less efficient in reorganization because equity over-invests in risky projects

In corporate bankruptcy the goal is to obtain enough repayment to creditors that lenders will continue to lend, at least to other borrowers. Inefficient investment decisions made by equity managers in prioritizing decisions, limit the company’s return. Filtering failure is a result of inefficient bankruptcy decisions. Both of these factors are influential to creditors, which may cause them to raise interest rates or reduce the amounts they are willing to lend, depending on whether the company’s return is lowered by inefficient decisions.

Sometimes a corporation is financially solvent, yet strategically defaults on their debt. When the firm is successful, owners repay. They default if the firm fails, with filtering failure and inefficient liquidation.

Slavery is no longer used as a penalty for personal bankruptcy, so individuals can only reorganize, even though it is most commonly referred to as liquidation. When individuals claim bankruptcy, their personal assets are liquidated in order to repay any debt and their assets are divided among the creditors. There is a limit to the amount of assets that debtors must use to repay. Debtors can keep a certain amount of financial wealth and post bankruptcy earnings. “Fresh start” refers to 100% exemptions for post-bankruptcy earnings, limiting the debtor’s obligation to repay. Most unsecured debts are discharged. In personal bankruptcy, debtors can get partial consumptions insurance. Prior to filing for personal bankruptcy, debtors can convert non-exempt assets as bank accounts into home equity. Wealth for debtors who are homeowners are protected by high homestead exemptions.

Product Description
Your Easy-to-Follow Action Plan for Financial Recovery

Fighting off creditors and trying to pay mountain-high bills can weigh anyone down. Stop living day-to-day and regain control of your finances once and for all. The Complete Chapter 7 Personal Bankruptcy Guide can help you put an end to the abusive tactics of collection agencies and guide you through filing your own bankruptcy. You deserve a new beginning and it starts right here.

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The Complete Chapter 7 Personal Bankruptcy Guide

• ISBN13: 9781892949424
• Condition: NEW
• Notes: Brand New from Publisher. No Remainder Mark.

Product Description
A complete guide to filing for Chapter 7 personal bankrupcty, this book contains everything necessary, including clear and understandable instructions, worksheets, and official federal bankruptcy forms that are provided as computer-fillable PDF forms that perform the complex mathematical calculations for the user. The appendix provides details of the bankruptcy exemptions available in all 50 states and Washington D.C. The enclosed CD also contains Adobe Acrobat Read… More >>

The Personal Bankruptcy Toolkit