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Bankruptcy Cases – How to Narrow Your Search
Looking for specific bankruptcy cases? Shorten your research time by first
identifying the type of bankruptcy cases you are looking for.
Bankruptcy cases refer to those cases wherein a company or an individual
becomes financially incapable of resolving debt with all their creditors. These
cases are typically settled in a bankruptcy court.
The Three Common Types of Bankruptcy Cases
Bankruptcy cases actually fall under three general kinds that can be filed in
the United States and settled in bankruptcy court.
The first type is often called Chapter 7 bankruptcy, also called ‘liquidation’.
In this case, there is a procedure that the debtor has to undergo with close
supervision of the court wherein assets, save for some exempt properties, are
sold off to earn cash. The cash is then used to pay off all the creditors of the
debtor. In Chapter 7 bankruptcy, individuals are often discharged of certain
debts and your income needs to fall under a certain threshold to qualify.
The second type of bankruptcy is Chapter 13 bankruptcy which is also called
‘adjustments of debts’. Only those with a regular income can file for bankruptcy
of this kind since you are required to submit a payment plan for your creditors,
usually within a span of three to five years. But this type of bankruptcy also
has its pros and cons. Even though you will not be discharged from certain debts
as with Chapter 7 bankruptcy, you do get to keep your assets as long as your
plan for paying creditors is accepted and deemed feasible.
The third type of bankruptcy is Chapter 11 which is referred to as
‘reorganization’. This is usually the type of bankruptcy that commercial
entities apply for. Once again, it is the responsibility of the debtor to
present a concrete plan of action to the bankruptcy court, which combines the
discharging of certain debts and the payment of creditors. At the same time,
certain contracts can be terminated and assets can also be recovered. There is
often internal reorganization that takes place following a consolidation under
this type.
There are other less common types of bankruptcy cases such as Chapter 12, which
is similar to Chapter 13 except that it applies to family farmers or fishermen
who need to continue conducting business even after the bankruptcy has been
filed. There are also other provisions in the bankruptcy code for the filing of
bankruptcy for municipalities and ancillary and cross border cases wherein
bankruptcies outside the United States are dealt with.
Whatever the type, it pays that you know what you are looking for so that your
search for bankruptcy cases is more focused… and more fruitful.
Now that you know the type of bankruptcy case you are looking for, your next
stop is to find a good provider. Check out the ones we have reviewed for you at
our
bankruptcy court
records section. |
