When Can I File Bankruptcy Again Illinois
Bankruptcy
Things You lot Should Know Near...
Defalcation can touch both individuals and companies. Every bit a consumer, y'all may attempt to get your money back or brand a warranty claim for a product or service you were not satisfied with, only to observe that the seller has gone bankrupt. Or, you may face up defalcation yourself. To make the most of either situation, you should know some bones facts almost bankruptcy and how it works.
What is Bankruptcy?
Defalcation is a legal procedure that takes place in federal court. In bankruptcy liquidation cases (Chapter vii), all of the debtor's non-exempt avails are sold and their creditor's claims are reviewed for payment. Most claims that aren't paid through liquidation are discharged. In reorganization cases (Capacity 11 and 13), the court approves a repayment plan that provides for fractional payment of debt over time. The remaining balance may be discharged.
How Defalcation Works
Both individual and company debtors may file a petition for bankruptcy with a U.s.a. defalcation court. The petition must include a list of all debts and avails, as well every bit other pertinent information. Because defalcation law is quite complicated, most people who file for bankruptcy rent a lawyer.
When debtors file for bankruptcy, they are protected from creditors in a diversity of ways, including the post-obit:
-
near new lawsuits confronting the debtors may not exist filed, and pending lawsuits are usually postponed;
-
creditors must stop attempting to collect on debtors' unpaid bills; and
-
collection on existing liens is commonly stopped
If you purchased an detail or service from a visitor that filed for bankruptcy and you lot want to recover your money, you will have to find out in which U.Due south. bankruptcy court the visitor has filed. Y'all must then file a proof of merits course with the court – consummate with the bankruptcy case number – to receive consideration for any possible payment on your claim. The defalcation case number may be obtained from the court for a small fee. The addresses and telephone numbers of U.S. bankruptcy courts located in Illinois can be establish on the Illinois Chaser General'southward web site, www.ag.country.il.united states.
Types of Defalcation
There are iii main chapters, or types, of bankruptcy petitions. Each of the three chapters has different requirements and purposes.
Chapter 7: Liquidations
Chapter vii is appropriate for individuals and businesses of whatever size. Companies that desire to get completely out of business or liquidate should use Chapter 7. This is commonly the easiest and fastest way to settle debts. In a Chapter seven case:
-
country law determines which possessions the debtor may keep; and
-
a trustee sells the balance of the assets to pay equally many of the debts as possible.
Remember - a corporation does not receive a discharge, so if a company starts up again after filing a Chapter 7 petition, even under another proper noun, information technology will nevertheless be liable for its old debts. Individuals practise receive a discharge simply may have a meaning corporeality of difficulty obtaining credit at reasonable interest rates after liquidation.
Chapter xiii: Wage Earner Plans
Chapter 13 is available to small businesses operated by a sole proprietor or individuals with a regular income who owe less than $807,750 in secured debt (debt for which in that location is collateral, similar a firm) or less than $269,250 in unsecured debt. Wage earner plans requite debtors the take a chance to continue operation and go back on their anxiety. With Chapter xiii, debtors,
-
do non surrender their current avails and property to pay debts;
-
agree to an established and monitored payment program; and
-
utilise their future income to pay creditors over fourth dimension.
Chapter 11: Reorganizations
Affiliate xi is an alternative program for individuals with debts too big for Chapter 13 or businesses not immune to file under Chapter 13. This petition is used past individuals and businesses that desire to retain control of their assets, which they endeavour to reorganize or liquidate, rather than turning them over to a trustee. Chapter 11 is primarily used for reorganization. With Affiliate 11,
-
debtor provides the court with a reorganization plan
-
with courtroom approving, the business may be discharged from all of its pre-bankruptcy debts except for the debts to be paid under the reorganization plan
-
creditors are often given the chance to vote on whether or not to have the proposed plan; however, the courtroom may still corroborate the programme if information technology meets sure standards, regardless of the creditor's opinions.
Office of the Illinois Attorney Full general
| Chicago ane-800-386-5438 TTY: 1-800-964-3013 | Springfield 1-800-243-0618 TTY: 877-844-5461 | Carbondale 1-800-243-0607 TTY: 877-675-9339 |
Printed by the authority of the country of Illinois.
This fabric is available in alternate format upon asking.
Consumer Publications
Protecting Consumers principal page
Source: https://www.illinoisattorneygeneral.gov/consumers/bankruptcy.html
0 Response to "When Can I File Bankruptcy Again Illinois"
إرسال تعليق