Questions about Bankruptcy Protection Law

When an individual or even a company files for bankruptcy because they are unable to continue to pay off their creditors and debts, this individual or company can file for what is called a bankruptcy protection under the United States bankruptcy laws. In order for a single person to file for a bankruptcy protection, this person may need to include either a cancellation of majority of their debts, and/or selling some of their possession or even a prearranged plan to pay some of the debts that are owed. However, for a business or company to file to for bankruptcy protection, this business or company make need to include all or part of relief debts and contracts, if the business intends to continue operations. Alternately, the business can quit operating and sell their possession in order to pay off the debts that are owed.

What is Chapter 13 Bankruptcy protection?

A Chapter 13 Bankruptcy protection was intended to protect majority of an individual’s important property that can include their home and vehicles. According to the Chapter 13 Debt Repayment Plan, the amount of debts and payment deadlines can be overlooked and discussed in order to provide someone with extra time to continue to repay their bills.

What is Chapter 7 Bankruptcy Protection?

When filing for Chapter 7 Bankruptcy Protection the individual needs to be aware of what this protection will cover. A Chapter 7 Bankruptcy Protection in many cases will allow the non-payers to eliminate a majority of their debts and have the ability to start over with a clean record. While this may seem like the best choice, this can result in the individuals losing their property and getting a lower credit score.

In the state of Colorado, if an individual has filed for bankruptcy protection do they have to attend the 69 hearing with the creditor if the creditor has not filed a motion for relief from the automatic stay?

In this case this would be considered a violation of their bankruptcy’s automatic stay for any type of creditor to try to carry out a 69 hearing. So, what this means is that this individual will not have to attend the 69 hearing.

When an individual has filed for a Chapter 13 Bankruptcy Protection, what will happen to their debts after their agreed-on five year plan if the debts haven’t been paid back to the creditor?

After filing for bankruptcy some debts will be considered dischargeable. The kinds of debts that include child support, IRS debt and majority student loans are to be considered non-dischargeable. As for credit cards, those that are personal loans, pay day loans, vehicle repos and medical bills that are considered debt can be dischargeable, and towards the end of a person’s Chapter 13 plan these debts will be removed and they would not have to worry about paying these debts back.

When filing for individual bankruptcy protection and even LLC bankruptcy protection, there are some merits and demerits to following through with filing for bankruptcy protection. For more information about the different types of bankruptcy protection and how they apply in your individual situation, you can ask an Expert.