Which Form Of Bankruptcy Is Right For You?
Cincinnati chapter 7, Cincinnati chapter 11, Cincinnati chapter 12 and Cincinnati chapter 13, are not part of the travel log diaries of some wayward adventurer that never got got out of Ohio. They are not chapters of the Shrine’s or the skull and bones either. These are different types of bankruptcy that can be filed. They vary wildly in nature but easily understood. Each form of bankruptcy is designed for specific situations and allows for different things.
Emily had a really unlucky couple years that left her in financial ruin. She lost her job and started paying bills using credit cards believing her financial situation would improve. She couldn’t afford the Cobra payments to maintain her health insurance and then had a car accident and racked up medical bills. she owned very little, a car and small boat, and a few pieces of art. Her lawyer recommended she file for chapter 7 since most of her debt was dischargeable. She had no student loans, nor was her debt obtain through fraud or criminal behavior. She wasn’t trying to get rid of a court imposed fine or payments of alimony or child support. Her assets would be liquidated and the creditors would be paid from the proceeds. because she had few assets to protect she would be able to start over with a clean slate and get out from under her debt burden.
Tom has many assets so he will go a different route then Emily. Tom has a good work and consistent influx of capital. He made several bad deals and got stuck holding product with no value. His debt isn’t mammoth, the unsecured debt is less then $200,000. He would like to keep his assets and property so his lawyer suggests he file for chapter 13. He will make payments to a trustee who will see that the creditors get paid back anything from 10 to 100 percent of the debt over several years. Tom’s cousin Dale is also struggling. He owns a farm and is struggling to pay off debt he racked up after three years of drought and bad harvests so he will file using the chapter known as 12. This is similar to thirteen, but is designed for farmers so they can retain their property and pay down their debt.
Ellen is the head of a medium size business that took a beating. The company has debts too big to file using 13. It also has a new operational group and a smart, clear business plan. By filing under the chapter known as 11, the company will be able to continue running and reorganize itself. A trustee will be appointed and a creditors committee will decide if the new plan holds promise. The creditors will be paid through liquidated assets or through future monies the company earns.
There are many types of bankruptcy designed to help businesses and individuals get a second chance. In these times of economic turmoil more and more people are discovering their options under the bankruptcy laws.