Difference Between Chapter 7, chapter 11 and chapter 13 bankruptcy?

Category: Education

Presentation Description

In this pdf, we have explained the key difference between chapter 7, chapter 11, and chapter 13 bankruptcy. Not so many people understand what is the main difference between these bankruptcy filing and which would be the best option for them, that's why we have created the pdf to offer you the best possible answer of this question, and after reading this pdf you will get to know the importance of each bankruptcy filing and which will be fit for you.


Presentation Transcript

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D I F F E R E N C E B E T W E E N C H A P T E R 7 1 1 1 3 B A N K R UP T C Y N A T H A N A B E R N E M A N A P C B A N K R U P T C Y A T T O R N E Y B A N K R U P T C Y L A W F I R M W R I T T E N B Y

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I f y o u r e c o n t e m p l a t i n g b a n k r u p t c y i t c a n b e a s t r e s s f u l a n d f r u s t r a t i n g t i m e . Y o u m a y n o t k n o w w h e r e t o t u r n w h i c h t y p e o f b a n k r u p t c y t o c o n s i d e r o r w h o y o u c a n t r u s t . T h a t s w h y w e a t N a t h a n A . B e r n e m a n A P C i n L o s A n g e l e s C A o f f e r a f u l l a n d c o m p r e h e n s i v e c o n s u l t a t i o n t o h e l p y o u b e t t e r u n d e r s t a n d y o u r s i t u a t i o n a n d w h a t y o u r o p t i o n s a r e . H e r e s a q u i c k o v e r v i e w o f t h e m o s t c o m m o n b a n k r u p t c y t y p e s a n d h o w y o u m i g h t q u a l i f y .

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What qualifies you for Chapter 11 Chapter 11 is also known as a "reorganization" bankruptcy. In most cases well work with you to present a plan for how you will repay your debtors over time. You can typically qualify for Chapter 11 bankruptcy whether youre filing as an individual or as a small business. Its typically more flexible but it can be more expensive and time-consuming. Chapter 11 also doesnt have an income requirement. It can be a good solution if:

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·         You need extended-payment terms. Chapter 11 can feature new contract terms between you and the creditor. The terms can be as long as needed provided that both parties agree. ·         You plan to discharge the debt. ·         You dont want to turn over your disposable income to a trustee.

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What qualifies you for Chapter 13 Chapter 13 bankruptcy is an option for you as an individual and you could qualify with your small business if you file your petition as a sole proprietorship. Your business would not qualify if you formed it as a partnership or corporation. Chapter 13 also places a debt limitation not-to-exceed 1257850 in secured debt and 419275 in unsecured debt. It can be a good solution if:

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·         Youre looking for an option thats cheaper than Chapter 11. ·         You need to process your bankruptcy quickly. ·         You want to include more types of debt. ·         Youd like the court to shorten the commitment period. ·         You have a regular income. ·         You want to keep your property.

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What qualifies you for Chapter 7 Chapter 7 is also known as a "straight bankruptcy" or a "liquidation bankruptcy." It can be an option for individuals married couples or small businesses. In this scenario the court appoints a trustee to take your assets sell them off and distribute the money to those debtors who have filed claims.

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You can still keep "exempt property." The idea here is that you have the opportunity to make a fresh start free from debt. You can be disqualified for Chapter 7 bankruptcy protection if you failed to appear in court or if your bankruptcy petition was dismissed. As your Chapter 7 bankruptcy attorney in Los Angeles well review all the reasons why you may qualify for Chapter 7.

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Key Difference between Chapter 7 11 Chapter 13 bankruptcy A Chapter 11 is similar to Chapter 13 in that both plans include a proposal for repayment of the debt with the difference being that Chapter 13 has a not-to-exceed limit on the debt you can owe to be eligible. Chapter 13 is the second most common form of bankruptcy and it offers more repayment flexibility for individuals and small companies.

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Chapter 11 is a more complex and expensive option and it can be reverted to a Chapter 7 "liquidation" plan if a small business is not able to make the agreed-upon payments. When a small business is just coming out of a difficult business situation and trying to make the agreed upon payments to the trustee its a challenging time.

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Chapter 7 could be seen as a nuclear option. If you file as a business Chapter 7 means that youre closing your doors. For an individual Chapter 7 means that you could lose non-exempt property and assets but it can be a fast way to eliminate debt. Of the three types Chapter 7 is the most common. Its designed to allow people who are drowning in debt and who have a limited income.

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Next Step: Contact Nathan A. Berneman APC in Los Angeles CA Its not the end of the world and the bankruptcy options allow you to move forward. Well go over all your options with you and recommend the solutions that should work best for you. Then well discuss the process which files and records we will need as well as what you can expect depending on the type of bankruptcy that will be meet your financial requirements.

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805.492.7045 877-620-0044 888.200.4443