forms for filing chapter 7 bankruptcy

If you’re thinking of filing bankruptcy, there are a number of things you need to know. Bankruptcy comes in a number of forms, and it does not always discharge all your debts. Let’s look at some important bankruptcy facts that you need to be aware of.

First, there are several types of bankruptcy, the most common being:

- Chapter 7

- Chapter 11

- Chapter 13

Chapter 7 bankruptcy is also known as a liquidation. Under this type of proceeding, all assets belonging to the debtor are turned over to the bankruptcy trustee, who then sells (liquidates) them and distributes the money from that sale to all the creditors.

Under Chapter 7 bankruptcy, the creditors must deal with the trustee for all payments. Once the liquidation is complete, the debtor is released from any future obligations for the debts – the lenders cannot recover anything further in the future. This type of bankruptcy can be filed once every 7 years.

Chapter 11 bankruptcy is generally used for corporate filings, but may also be available to individuals who are self-employed or running their own businesses. This type of bankruptcy is designed to allow the business to continue operating, while restructuring the debts under supervision of the courts. This is the type that you generally hear about when large corporations file for bankruptcy, and then emerge intact after the proceedings are complete.

Chapter 13 bankruptcy the debts are paid through future earnings rather than through liquidation of the debtor’s current assets. Under this type of bankruptcy, the borrower gets to keep most of their property and other assets, while working out a plan to repay all the debt.

Under Chapter 13 bankruptcy, the court appoints a trustee who works with the debtor, the creditors and the court itself. During the life of the plan, which can be up to five years, the debtor is not allowed to assume new debts and must get the approval of the court to sell any assets. If any payments are missed, according to the plan agreed upon by all parties, a Chapter 13 bankruptcy may be converted to a Chapter 7 upon petition by any creditor.

An important aspect of bankruptcy that many people are not aware of is that it will not automatically discharge all debts, even in the case of Chapter 7 liquidation. If a lender can show that the debt was incurred fraudulently, either by way of a fraudulent application or with no intention of ever repaying the debt, the debt may be exempted from the bankruptcy.

James T. Adler knows what it’s like to be in debt has successfully managed to pay off over $100,000 in debts.

He put together a free report “How to Find Money to Payoff Your Debt This Month”.