Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
1) Yes, as secured loans - such as for the home and car - get paid first.
2) Most unsecured debt - including credit cards - get paid evenly (in proportion to the amount of debt owed to each one). In other words, you will not be able to pick the ones you want to pay more to.
3) If the disability is from Social Security, the payment is off-limits to the Bankruptcy court. If you are receiving private disability, the payments would be included in the payment plan.
4) If your income increases while the Chapter 11 in progress, your payments must also increase.
5) Yes - the Bankruptcy court is entitled to any inheritance received by you or your wife while the Bankruptcy is in progress.
6) The bank cannot touch assets that are being leased, as these do not belong to you or to your corporation.
7) Coming out of Bankruptcy is good. It means the plan has been finished, and the Bankruptcy is ready to be closed.
8) College expenses are not allowed in a Chapter 7 or 13. Whether you will be allowed those expenses in a Chapter 11 will depend on the creditors. However, although possible, it is unlikely that you will be allowed those expenses in a Chapter 11 either.
9) You can employ him if he is needed, and the need for his services will not be impacted by the fact that he is your son. However, it is unlikely you will be able to prove he is needed if he has never worked there before.
10) You can go on vacation, but you would have to pay cash, as you cannot incur any more debt once you know you are going to file a Bankruptcy. You cannot pre-pay other unnecessary expenses or debts, as these can be ordered returned.
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