Bankruptcy: Various Chapters For Various Situations

Cincinnati chapter 7, Cincinnati chapter 11, Cincinnati chapter 12 and Cincinnati chapter 13, are not entries into a travel log diaries of some wayward adventurer that never got across the bridge into Kentucky. They are not chapters of the Shrine’s or Moose Lodge either. These are various forms of bankruptcy that can be filed. They vary wildly in nature but easily understood. Each form of bankruptcy is designed for specific situations and allows for different things.

Emily had a really unlucky couple years that left her in financial ruin. She was laid off and started paying bills using credit cards knowing that her financial situation would improve. She couldn’t afford the Cobra payments to maintain her health insurance and then had a car accident and racked up medical bills. she owned very little, a car and small boat, and a few pieces of art. Her attorney recommended she file for chapter 7 since most of her debt was dischargeable. She didn’t have a lot of student loans, nor was her debt obtain through fraud or criminal behavior. She wasn’t trying to discharge a criminal fine or payments of alimony or child support. Her assets would be sold and the creditors would be paid from the proceeds. Since she didn’t have a lot of assets to protect she would be able to start over with a clean slate and get out from under her debt burden.

Tom has a lot more to lose so he will go a different route then Emily. Tom has a steady job and consistent influx of capital. He made a couple of bad investments and got stuck holding worthless goods. His debt isn’t huge, the unsecured debt is under $200,000. He wants to keep his assets and property so his lawyer suggests he file for chapter 13. He will make payments to a trustee who will see that the creditors get paid back anything from 10 to 100 percent of the debt over several years. Tom’s cousin Dale is also in trouble. He owns a farm and is struggling to pay off debt he accrued after three years of drought and bad harvests so he will file under the chapter known as 12. This is similar to thirteen, but is designed for farmers so they can retain their property and pay down their debt.

Ellen is the CEO of a medium size business that took a beating. The company has debts too big to file using 13. It also has a new operational group and a strong revised business plan. By filing under the chapter known as 11, the business will be able to continue operating and reorganize itself. A trustee will be appointed and a creditors committee will determine if the new plan holds promise. The debts will be paid through liquidated assets or through future revenue the company earns.

There are many forms of bankruptcy designed to help businesses and individuals get a second chance. In these times of economic turmoil more and more people are discovering their options under the bankruptcy laws.

Connor R. Sullivan recently worked with a Cincinnati Chapter 11 bankruptcy attorney while conducting research for a new article. His daughter was offered a legal internship with a Cincinnati Chapter 13 bankruptcy attorney during the summer. Grab a totally unique version of this article from the Uber Article Directory

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