Description

Provides access to some information about the bankruptcy process and information about local bankruptcy procedures. Individuals appearing as debtors (including husbands and wives filing jointly), creditors or other interested parties before this court do not have to be represented by an attorney but they are still required to comply with all laws, rules, and procedures.   An individual may represent him or herself in bankruptcy court without an attorney. But a corporate entity or partnership may not appear in bankruptcy court without an attorney, and if a corporate entity or partnership attempts to file a bankruptcy case without an attorney, the case may be dismissed. A proof of claim may be filed by an individual, corporate entity, or partnership with or without an attorney.   A bankruptcy case normally begins by the debtor filing a petition with the bankruptcy court. A petition may be filed by an individual, a married couple, or by a corporation or other entity. Creditors receive notice from the clerk of court that the debtor has filed a bankruptcy petition. Some bankruptcy cases are filed to allow a debtor to reorganize and establish a plan to repay creditors, while other cases involve liquidation of the debtor's property.    Chapter 7 of the Bankruptcy Code provides for the “liquidation” or sale of a debtor’s nonexempt property and the distribution of the proceeds to creditors. It is also commonly known as the “fresh start” type bankruptcy. In the case of an individual, the debtor is allowed to claim certain property as exempt. In exchange for this, the debtor gets a discharge, which means that the debtor does not have to pay certain types of debts. Corporations and partnerships do not receive discharges.   Chapter 13, also known as a “wage earner’s plan,” enables individuals with regular income to develop a plan to repay all or part of their debts over a three to five year period. Payments are made to a chapter 13 standing trustee, who makes distributions to creditors according to the provisions of a confirmed plan. Filing a chapter 13 case allows debtors to keep valuable property – especially a home and car – which might otherwise be lost to foreclosure or repossession, if the debtor can make the payments which the bankruptcy law requires to be made to creditors.    Chapter 11, usually filed by businesses, but occasionally are utilized by individuals with significant assets. While the debtor maintains control of the day-to-day operations of the business or the individual’s estate, the creditors and the court work to approve a plan to repay the debts. There is no trustee unless the judge decides that one is necessary; if a trustee is appointed, the trustee takes control of the business and/or property.   Chapter 12 – Like chapter 13, but it is only for family farmers and family fishermen.

What's Here