Fear of financial devastation or ruin caused over 1.5 million Americans to file bankruptcy in 2010. (Chapter 13) Statistics provided by the U.S. Bankruptcy Courts show that financial hardship can strike anyone (U.S. Bankruptcy). According to The Nations Health magazine, medical bankruptcies comprised two thirds of all bankruptcies filed in 2007, meaning the debtor’s list of creditors included some sort of delinquent medical bills (Currie). Christine Dugas points out in USA Today that as the unemployment rate increases so will bankruptcy filings (Dugas). These statistics show that financial hardship and the need for the fresh start that bankruptcy can provide can strike anyone, therefore, understanding the differences in requirements, process, and outcome of the two different types of bankruptcies most commonly filed, Chapter 7 and Chapter 13, is vital for those choosing an option out of their financial trouble.
Although a debtor may be able to file either Chapter 7 or Chapter 13, the requirements vary enough that some debtors may only have one choice of filing. Title 11 of The United States Code describes two major items to consider in its regulation of the two bankruptcies, assets and disposable income (US Courts). In the case of individuals, assets are every tangible article or item a person possesses, such as, cars, homes, or personal property (Bankruptcy). Although having assets is possible when filing Chapter 7, the common rule is that a debtor should follow this avenue when they possess no other assets besides personal property with minimal value, everyday use vehicles, and/or a primary residence. On the other hand, Chapter 13 permits a debtor to possess and retain any assets their funds allow. In bankruptcy terms, di...
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...al position allows for a fresh start and future success. Analyzing the requirements, process, and outcome will ensure a sound choice is selected.
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The legislation is a complex in part because those creditors fall into so many categories-secured creditors, unsecured creditors, government creditors, and so on-each with its own special rights and interests in the bankruptcy process.
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With Detroit filing for bankruptcy public policy came into play the bankruptcy court had to take action.
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Timeline of this case should be clearly organized in order to better understanding this case. In 2009, Poor Son transferred Rich Grandson to Parent. In 2010, Poor Son filed a voluntary petition for reorganization under Chapter 11 of the US bankruptcy code, and Parent deconsolidated Poor Son from statements. In 2011, Poor Son filed an action against Parent seeking to void the transfer of Rich Grandson. In May 2012, the bankruptcy court held a selection meeting in which it considered competing plans of reorganization submitted by four bidders. In June 2012, OtherCo, an unrelated party, became the wining plan sponsor. In July 2012, OtherCo rescind its offer because the bad evonomic condition. In December 2014, the bankruptcy court recommended
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Among the study’s findings were that the deciding factor of the predictor of bankruptcy should not be only a few ratios, as the measure of a company’s financial solvency may differ as the firm’s situations differ. The important question is to which ratios are to be used and of those ratios chosen, which ratios are given priority weight.
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Chapter 7 and Chapter 13 bankruptcies are full of advantages and disadvantages. But at the same time they are very different. Without knowing these differences a person could lose many things from money to possessions.
A creditor who is not a party to the bankruptcy proceedings, but who has an interest in the proceedings, may file an ex parte application with the bankruptcy court. An insolvent debtor may file a debtor’s petition for voluntary bankruptcy. The insolvent debtor must provide to the court a summary of the debts and assets. An agreement between a debtor and creditor that the amount stated as being owed to the creditor is accurate is an account statement. However, an account that is open and unsettled is an account that is current.