Personal Bankruptcy Laws
What is personal bankruptcy?Personal bankruptcy allows for certain individuals that live in certain jurisdictions, to file and declare bankruptcy. In some jurisdictions, bankruptcy can only be filed by a corporation. In the United States the same chapters of bankruptcy are applied in both personal and corporate bankruptcy. The chapters of bankruptcy that most personal bankruptcies fall under are Chapter 13, which is where the person reorganizes their debts and sets out a reorganization plan, or chapter 7, which is where a person liquidates his/her possessions in order to pay the creditors what he/she owes. There are rare occasions where family farmers or family fishermen can file a chapter 11 bankruptcy.
In the state of California, how much does a personal bankruptcy run if the person owes back taxes, and has a recent short sale of property, and major credit card debt that totals $50-$70 thousand?In the state of California, there is no specific set amount that the attorneys charge to handle a bankruptcy for someone. The person would need to find an attorney and negotiate the price of the attorney fees when they go in to consult on the bankruptcy proceedings. In most cases however, the average cost is between $700 and $1000.
If a person files for chapter 7 bankruptcy and owns a golf cart repair and sale business that is listed as a corporation, can this corporation be considered a possession in the bankruptcy proceedings and how would a person fill that out?Even though the person has the corporation, when filing for bankruptcy, the corporation would still be considered a possession and this would need to be included on the Schedule B that the person fills out. If the corporation has any possessions then those would need to be figured into the value of the corporation. If the corporation does not have any possessions, then the person may want to claim the value of the corporation as $1. If the person would want to file an exemption then he/she would need to file under the personal property exemption 222.25(4), that is if the person has not already used that exemption.
How long after a personal bankruptcy is discharged, would an inheritance be received from the estate of a deceased relative and be free of attachment?When a person files for bankruptcy, he/she would need to include any inheritance that he/she would be entitled to receive if the inheritance comes into effect 180 days of filing the bankruptcy. If the inheritance falls under this guideline then it would become a part of the bankruptcy estate and would be used to pay the creditors back the money that they are owed, but if the inheritance is gained after the guidelines, then there is a chance that the bankruptcy estate would not take the money.
If a person files for bankruptcy in the state of New York, would he/she be required to resign their position as Director of any Boards that he/she is a part of?According to the United States Constitution, a person can file for bankruptcy if he/she wants to and there is no state law in the state of New York or any bankruptcy law that states a person that files for bankruptcy cannot serve as the Director of any Board or that the person would have to resign if he/she filed for bankruptcy.
If a person finds themselves in debt and is unable to pay the debts that they owe, then they may consider filing for personal bankruptcy. If a person chooses to file for personal bankruptcy, then he/she may run into questions regarding the proceedings, laws, process, or how to contact an attorney to help them. The person would need to consult an online Legal Expert before proceeding with any personal bankruptcy to insure that they are taking the legal steps in doing so.