|Posted on April 30, 2019 at 10:55 AM|
Bankruptcy is a federal proceeding and is not filed in the county courthouse. When you decide that bankruptcy is best for your situation, you will choose, with the help of Mr. Thomas, which bankruptcy chapter best meets your needs.
Chapter 7 – Your unsecured debts are discharged by the bankruptcy court. A trustee is appointed to oversee your case. Any property with value that exceeds the statutory exemption will be sold to pay your creditors. In most cases, all of your property will be exempt, and you should talk to Mr. Thomas to determine if your property falls within the allowed exemption limit.
Chapter 13 – The trustee that is appointed to your case collects payments from you and pays your creditors according to a repayment plan approved by the bankruptcy court.
Chapter 12 – Very much like a Chapter 13 but is available only for farmers and fishermen.
Chapter 11 – Also very similar to Chapter 13 designed for businesses.