Common Laws Concerning Bankruptcy

The legal guidelines of the Bankruptcy has been included and divided into two separate chapters in the American Law; which can be found in Chapter 7 and Chapter 13.

Chapter 7:

According to Chapter 7, found at HTTP:// Before the time of submission and filing the bankruptcy, a grace period of 180 days is given for completion of the required credit counseling which is stated in this section. In filing the bankruptcy the court will give an individual the authority and the obligation as a trustee. Specific personal things or assets that are mentioned in the exempted assets could be kept by the debtor upon processing of such case. The money is split among the debtors. The priority for the spilt is distributed among the Bankruptcy Code. Getting the professional services of Naimi & Dilbeck Law Firm as your legal counsels will surely guarantee you of their competencies as practicing Bankruptcy Law Attorneys.

Who is eligible?

Such inclusion for being eligible of chapter seven is an individual should undergo and pass the specific test known as ‘means test’. The discharge can not be benefited if the debtor had previously been discharged in Chapter 7 bankruptcy, within the last eight years. The certain number of consumer filings and submissions has reached up to 71.2 %. In 2004, over a decade ago, 11,597,462 bankruptcies had been submitted, which 11,137,958 filings were Chapter 7 filings.

Not included

When bankruptcy is declared, aside from student loans and taxes, most pre-petitions are extinguished. When the court has reached a verdict or if issuance and approval of the court-entered order is done, certain debts are removed. Nonetheless, it is mandatory to carry on with the mortgage payments, to preserve shelter. Certain laws such as marital ownership law can be used to keep your home. Therefore, voluntary submission of assets which are not included in the exemption ought to be done for equal distribution. After which bankruptcy status have been submitted and declared, such status mark would be very difficult to remove much like a black colored mark. It continues to remain on credit for nearly 10 years from the date of submission Oakville Water Line Installation.

Chapter 13:

Such guidelines and procedures have comparison with the cases in Chapter 7. Any debt management plan proposed should be filed with the court. Certain schedule for debt payment generally ranges from 3 to 5 years. The remaining funds after subtraction of the budget for the needs like; food and housing will be used as the payment. Such preservation and retaining of assets is provided to the debtor. Click here to find out more. The limitations are that it is exclusively for those having $307,675 of unsecured debt, and, $922,975 of secured debt.

Past Filings:

Throughout the year of 2004, the filings under chapter 13 reached to an overall total of 449, 129. There were about 29 % of the total number of filings. In 2005 and the economic downturn, these figures rose drastically. Certain factors can result in the disapproval of chapter 13 filing, which can occur when the debtor has availed discharge under chapter 7, 11 and 12 during the last 4 years. Previous filing of chapter 13 won’t still be approved, even though 2 years have passed from the day of filing.


The debt is paid off as a whole or in parts under specific plans that have been proposed. A person’s accountability and obligation to creditors will be uplifted upon the issuance of a discharge order from the court, since debt is settled and paid in full. The exemptions to the scheme are student loans and support obligations. Considering that the plan is totally achieved and resolved, the home may be excluded or preserved by the person. Such factors can be used in home preservation, which are; homestead exemption or marital ownership law. The following situations will provide the homestead exemption inapplicable, like; debt of greater than $125,000.00, in situations where acquisition of property was 40 months before the day of filing and in some instances if the person or borrower has been proven of fraudulent conduct.