When it comes to filing a bankruptcy case, the most common example of it is a case of Chapter 7 bankruptcy. This type of case is generally known to be the “fresh start” or “liquidation” bankruptcy cases. In these cases, the unsecured debt gets wiped away as the majority of the assets of the debtor gets sold or liquidated.
While you are filing a case of Chapter 7 of Youngstown Bankruptcy, it is obvious that you might get confused. Maybe before filing the case, you didn’t know whether you can qualify for it or not. Owing to the lack of awareness, there are many clients who come to us at Youngstown Criminal Law Group to understand whether they are qualifying or not. If you are also confused about the merit of your case, then come to Sean Logue and his team of experts. They will first review your case. After that, you need to go through a means test that will determine whether you are qualifying for the Chapter 7 bankruptcy case or not. If your case does not match the prescribed criteria, then the firm will offer you more options. You can opt for Chapter 13 bankruptcy which is typically about restructuring your debt so that you can set a payment plan for your unpaid invoices.Details You Need to Know about Bankruptcy Case Chapter 7
As we have already pointed it out, it can be extremely confusing for an individual as well as for a business to determine whether they are eligible to file a case of Chapter 7 Youngstown Bankruptcy or not. It is necessary to know as your assets remain at stake. In such a predicament, instead of filing the complicated litigation on your own, you can come to us at Youngstown Criminal La Group without any hesitation.
If you are filing a bankruptcy case, then it is also necessary to get educated about the case and the law for you. Take a look at the following points to understand the criteria laid out by Bankruptcy Court for the individual as well as for business.For Business
Is your business in great financial distress which is already disrupting all your dealings as well as operations? Then file a case on Chapter 7 or liquidation. In this case, you have to keep in mind that once you file the litigation, all the operations of your business need to stop with immediate effect. Board of the trustee will be formed who will assess the financial situation of the business. They might also have the power to authorize some of the necessary operations of your business. The trustee will be responsible to sell off the nonexempt assets of the debtor and take care of the debts immediately.
You need to keep in mind that while you are filing the case of bankruptcy, the employees are not supposed to lose their jobs. If in case, any of them loses their work, then the company is supposed to provide them with some wages during the period of the bankruptcy process. According to the Bankruptcy Code, the trustee must follow the hierarchy of payment outline. When it comes to immediate priorities in terms of payment, it includes the claim of salary, wages, and commissions.
After the process of liquidation, the business ceases to exist owing to the lack of means and resources. After the process is over, and the creditors are duly paid, the stakeholders are supposed to claim on whatever leftovers are there.For Individuals
If you own a property or reside in your own house, you are eligible to file a Chapter 7 bankruptcy case in the USA. If your claim of bankruptcy has been dismissed within the previous 6 months, then you might not be able to file again immediately. If you have received bankruptcy discharge in the last 6 to 8 years, then also you might not be qualified to file the case again. Also, if after reviewing it is found that you can set a payment plan depending on your salary, income, and expenses, you will be directed to file a Chapter 13 bankruptcy case.
Once you file Chapter 7 bankruptcy, you will get the permission to retain some of your exempt assets. This can vary from state to state. The trustee will be responsible to sell off the nonexempt assets to pay back the creditors. This is how the secured debt will be wiped off. The types of debts that won’t be discharged include,
- Child support
- Income taxes that are less than 3 years old
- Fines and restitution ordered by the court
- Loan for studies
- Property tax
The duration of Chapter 7 Youngstown bankruptcy is of 10 years.
For more details on Chapter 7 bankruptcy or for free consultations from Sean Logue and his team, call at 1 844-748-8384 or drop an email at email@example.com.