Debts Never Discharged In Bankruptcy
While the goal of both Chapter 7 and Chapter 13 bankruptcy is to put your debts behind you so that you can move on with your life, not all debts are eligible for discharge.
The U.S. Bankruptcy Code lists 19 different categories of debts that cannot be discharged in Chapter 7, Chapter 13, or Chapter 12 . While the specifics vary somewhat among the different chapters, the most common examples of non-dischargeable debts are:
- Alimony and child support.
- Certain unpaid taxes, such as tax liens. However, some federal, state, and local taxes may be eligible for discharge if they date back several years.
- Debts for willful and malicious injury to another person or property. âWillful and maliciousâ here means deliberate and without just cause. In Chapter 13 bankruptcy, this applies only to injury to people debts for property damage may be discharged.
- Debts for death or personal injury caused by the debtorâs operation of a motor vehicle while intoxicated from alcohol or impaired by other substances.
- Debts that you failed to list in your bankruptcy filing.
United States 1933 Bankruptcy Exposed +
It is established fact that the United States Federal government has been dissolvedby the Emergency Banking Act March 9, 1933, 48 Stat. 1, Public Law 89-719 declared by That is when America went from a Republic to a New Communist DemocracyWhere Mob RulesNo government can be a Corporation and no Corporation can be a government$$$$$ Since 1933 All Crimes Are Commercial $$$$$
What About The Pros And Cons Of Filing Chapter 13 Bankruptcy
Chapter 7 and Chapter 13 bankruptcy are both powerful debt relief options for folks in need of a fresh start. But the pros and cons of filing Chapter 13 bankruptcy are quite different than for Chapter 7. If you have a high disposable income or non-exempt assets you want to protect, Chapter 13 may be right for you. Check out this article to find out more about the pros and cons of filing Chapter 13 bankruptcy.
Chapters 11 12 And 1: Reorganization
Bankruptcy under Chapter 11, Chapter 12, or Chapter 13 is more complex reorganization and involves allowing the debtor to keep some or all of his or her property and to use future earnings to pay off creditors. Consumers usually file chapter 7 or chapter 13. Chapter 11 filings by individuals are allowed, but are rare. Chapter 12 is similar to Chapter 13 but is available only to “family farmers” and “family fisherman” in certain situations. Chapter 12 generally has more generous terms for debtors than a comparable Chapter 13 case would have available. As recently as mid-2004 Chapter 12 was scheduled to expire, but in late 2004 it was renewed and made permanent.
Many Will Be Driven From Their Homes
Despite the ability of the government to eventually deal with enormous debt on a national level, in the interim it would still be able to wreak havoc on even government employees. During the 2013 government shutdown, employees were evicted while on furlough or even those that were still active because their pay was suspended and their landlords couldnt wait for them to receive back pay before removing them from their homes. Considering thats what happens to the people that continue to be vital to the government, what fate can the privately employed people expect?
Well, consider this: in a three month period following Greeces economic crisis and despite billions in bailouts, Athens homeless rate rose roughly forty percent, and there was little improvement to the economy years later. For an indication thats closer to home, the Mortgage Bankers Association reported that 1.2 million households were lost to the 2007 American recession. Frankly, it would be amazing if there werent cities of homeless people for at least awhile after the government declares bankruptcy.
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What Happens If I Declare Bankruptcy
Home » What Happens If I Declare Bankruptcy?
When you declare bankruptcy, you will file a petition in federal court. Once your petition for bankruptcy is filed, your creditors will be informed and must stop pursuing any debt you owe. The court will then request certain information from you, including:
- The total amount of debt you owe
- A complete list of all your creditors
- An accounting of your total income
- An accounting of your outgoing expenses
You are permitted to represent yourself in bankruptcy court. You are also allowed to hire a lawyer who can serve as your advocate and help you navigate the complicated process of what happens if you declare bankruptcy. Having your debt discharged or reorganized in bankruptcy court can take a lengthy period of time. Should you get a lawyer, your lawyer can help you understand the relevant timeline in your bankruptcy case.
Do You Have Enough Disposable Income To Repay Some Debts
The means test determines whether you have enough disposable incomethe amount of your paycheck that remains each month after subtracting certain allowed expenses and required debt paymentsto repay at least a portion of your unsecured debts over a five-year repayment period. Unsecured debts are those obligations that aren’t backed by collateral, such as credit card balances, personal loans, and medical bills.
Learn more by reading The Bankruptcy Means Test: Are You Eligible for Chapter 7 Bankruptcy?
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Chapter 7 Bankruptcy Eligibility Depends On The Means Test And Other Rules
By Cara O’Neill, Attorney
Almost any person or company that owns property in the United States, or who has a permanent residence or business here, can file for Chapter 7 bankruptcy. However, you must meet several criteria before you’re eligible for a dischargethe order that wipes out qualifying debt.
For instance, if you’re an individual filing a consumer bankruptcy, your income must pass the “means test” . Also, the court will dismiss your case if you filed a previous bankruptcy within a certain period, or if the court believes you’re cheating creditors. And, you must be a natural personan incorporated entity isn’t entitled to a debt discharge in Chapter 7.
First Federal Bankruptcy Law
In 1800, Congress passed the first federal law relating to bankruptcy, called the Bankruptcy Act of 1800. Similar to many state bankruptcy systems at the time, the Bankruptcy Act of 1800 was very creditor-oriented and only permitted involuntary bankruptcies of merchant debtors. There were no provisions for individuals to file on their own. Some crafty debtors figured out that they could ask a friendly creditor to initiate the bankruptcy case. However, due to many complaints of corruption and favoritism, the law was repealed just three years later. The states continued to run various bankruptcy systems in the absence of federal law.
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The Court Dismissed Your Bankruptcy Within The Previous 180 Days
You can’t file for Chapter 7 bankruptcy if a previous Chapter 7 or Chapter 13 case was dismissed within the past 180 days because of one of the following reasons:
- you violated a court order
- the court ruled that your filing was fraudulent or constituted an abuse of the bankruptcy system, or
- you requested the dismissal after a creditor asked for relief from the automatic stay.
Can I File Bankruptcy In New York While Abroad
Under 28 U.S.C. §1408, the bankruptcy must be filed in the district where, for the majority of the prior 180 day period, the debtor has:
If youve been abroad in excess of 180 days, then we would look to where your principal assets were in the 180-days prior to that period. In a situation where a person has lived abroad beyond this time, most likely the proper district for filing would be wherever the borrowers primary assets are.
Qualifying to file bankruptcy in New York does not necessarily mean you can avail yourself to the New York State exemptions, including the generous homestead exemptions that could be available for primary residences in NYC.
Can The States Declare Financial Bankruptcy
The views expressed are those of the author and do not necessarily reflect the views of ASPA as an organization.
In April, United States Senate Majority Leader Mitch McConnell of Kentucky made a controversial suggestion in a radio interview, saying that states unable to close budget deficits sparked by the COVID-19 pandemic should declare bankruptcy. Senator McConnell subsequently walked back that proposal in the face of bi-partisan criticism. I also believe he made that suggestion and then reversed himself, as current opinion polls suggest that he is in a tough re-election battle with former Marine pilot Amy McGrath.
Partisan politics aside, we have individuals, private companies, not-for-profit organizations, hospitals, counties, municipalities and other entities that file for bankruptcy and re-organization as a means of securing financial relief, but not the states.
McConnells initial suggestion for fiscally-strapped states to declare bankruptcy is not the first time that such a proposal has been made indeed, it was proposed by some in the aftermath of the 2008 financial crisis, but was roundly criticized by Republican and Democratic lawmakers, as well as unions and the financial community.
As a student of public finance and public policy, this issue has now taken on greater importance in the current economic crisiswhich TIME magazine called last month, The Great Reckoning. It is a topic worthy of discussion in public administration .
Who Can File A Plan
The debtor has a 120-day period during which it has an exclusive right to file a plan. 11 U.S.C. § 1121. This exclusivity period may be extended or reduced by the court. But in no event may the exclusivity period, including all extensions, be longer than 18 months. 11 U.S.C. § 1121. After the exclusivity period has expired, a creditor or the case trustee may file a competing plan. The U.S. trustee may not file a plan. 11 U.S.C. § 307.
A chapter 11 case may continue for many years unless the court, the U.S. trustee, the committee, or another party in interest acts to ensure the case’s timely resolution. The creditors’ right to file a competing plan provides incentive for the debtor to file a plan within the exclusivity period and acts as a check on excessive delay in the case.
Only the debtor may file a plan in a subchapter V case. 11 U.S.C. § 1189.
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The Advantages And Disadvantages Of Declaring Bankruptcy
When your debt exceeds your assets and your ability to pay your creditors, bankruptcy can offer you a financial lifeline. Filing for debt relief through bankruptcy can have many advantages and disadvantages. Advantages of bankruptcy protection include:
- A new start that can help you create a healthy financial future
- The ability to retain much, if not all, of your personal property and assets
- Your creditors will be required to cease all debt collection actions
In addition to putting a stop to relentless phone calls and other debt collection efforts, filing for debt relief through bankruptcy can also have disadvantages that you should be aware of. Disadvantages of filing for bankruptcy protection include:
- Filing for bankruptcy stays on your credit profile for 7 to 10 years
- Filing for bankruptcy can lead to higher interest rates when you are eventually able to obtain financing
- You can be ordered to undergo court-approved credit counseling
- You cannot use bankruptcy to discharge overwhelming debt, again, for at least four to eight years, depending on what type of bankruptcy you had filed.
Each individual or business debt load is unique and requires close scrutiny and careful debt reduction planning. Your lawyer can take a clear, objective, and comprehensive view of your financial situation and help you create a plan to reorganize, reduce, or eliminate your debt.
For a legal consultation with a lawyer serving Rutherfordton, call
Foreign Nationals Filing For Bankruptcy
Internationally, many people view the United States of America as the land of opportunity, where anyone has the chance to obtain wealth. Many immigrants have come to these shores with nothing but the clothes on their backs and have succeeded at achieving the American dream. Millions of illegal immigrants have come to this country, as well, in the pursuit of a better life. Others come on student visas for the opportunity to study in American universities.
When people come to the United States, many look for work. Even those coming to study at colleges often take part-time employment for tuition or living expenses. Because these people will, on average, accept lower-paying jobs, they often do find employment. Moreover, many immigrants have networks in place here in the U.S. that help them adjust, find housing, and jobs.
Nonetheless, those people who come to the United States often have difficulty obtaining citizenship. The citizenship rules and requirements for the U.S. are strict. As a result, people who become professionals and engage in business in the U.S. dealings often remain foreign nationals.
Bankruptcy Code Requirements
In debt? Bankruptcy may be right for you. Contact the Bay-area consumer bankruptcy law firm ofMelanie Tavare.
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Things That Would Happen If The United States Went Bankrupt
The specter of the American government declaring bankruptcy gets trotted out particularly often any time theres a change in the majority party. Because weve been told for decades what a large, scary number Americas National Debt is, the populus fears that the time when it causes another Depression could come at any time. It couldnt even be said to catch us by surprise, since there were many alarmists that would be able to tell us that they told us so.
Well we here at TopTenz are not alarmists. Were here to tell you what would happen in the event of the USA declaring bankruptcy for the first time since 1933, and the prospect isnt pretty. But well also tell you why certain aspects of it, by their nature, ensure its very unlikely. Certainly, stranger things have happened, though. After all, other nations have experienced it hundreds of times in modern history, and their experiences are the evidence well be using for this list.
Understand The Us Debt Ceiling
What is the debt ceiling?The debt ceiling, also called the debt limit, is a cap on the total amount of money that the federal government is authorized to borrow via U.S. Treasury bills and savings bonds to fulfill its financial obligations. Because the U.S. runs budget deficits, it must borrow huge sums of money to pay its bills.
When will the debt limit be breached?After Senate leaders agreed to a short-term deal to raise the debt ceiling on Oct. 7, the Treasury estimated that the government can continue borrowing through Dec. 3. The deal sets up yet another consequential deadline for the first Friday in December.
Why does the U.S. limit its borrowing?According to the Constitution, Congress must authorize borrowing. The debt limit was instituted in the early 20th century so the Treasury did not need to ask for permission each time it needed to issue bonds to pay bills.
What would happen if the debt limit was hit?Treasury Secretary Janet Yellen told Congress that inaction on raising the debt limit could lead to a self-inflicted economic recession and a financial crisis. She also said that failing to raise the debt ceiling could affect programs that help millions of Americans, including delays to Social Security payments.
Do other countries do it this way?Denmark also has a debt limit, but it is set so high that raising it is generally not an issue. Most other countries do not. In Poland, public debt cannot exceed 60 percent of gross domestic product.
The Next Federal Bankruptcy Law
After the financial panic of 1837, Congress passed another bankruptcy law, called the Bankruptcy Act of 1841. For the first time, this bankruptcy law permitted debtors to file their own voluntary bankruptcies without a creditor to initiate it. This was a revolution in insolvency law. In fact, a debtor could file for bankruptcy and receive a discharge of debt. In addition, any individual could be a debtor, not just a merchant as under the 1800 law. The power to grant the discharge and judge other matters relating to bankruptcy rested with the United States District Courts.
Unfortunately, however, creditors viewed the 1841 law as providing few payments to creditors and discharging too much debt for too many debtors. Accordingly, the 1841 law was repealed in 1843.
Can A State File Bankruptcy
According to Illinois Comptroller Leslie Munger, the state of Illinois has a backlog of unpaid bills of just over $7 billion. Revenue projections suggest Illinois is not likely to climb out of this financial hole anytime soon. When the debt of private companies overwhelms their revenues, these companies often file bankruptcy. If bankruptcy was good for General Motors, why isnt it also good for the state of Illinois?
The short answer is that a state cannot file bankruptcy. All bankruptcy law is federal law. Although federal law says that people and corporations can file bankruptcy, no federal law says that a state can file bankruptcy.
Federal law does say that, if state law allows it, municipalities and other local governmental bodies can file under chapter 9 of the Bankruptcy Code. Thus, the city of Detroit could file a chapter 9 bankruptcy but not the state of Michigan.
States, of course, can make their own laws, but the U.S. Constitution forbids from simply passing its own bankruptcy law. At the time of the Constitutions drafting, states sometimes tried to abandon valid debts owed by the state or one of its citizens. A New York creditor might find try to enforce a debt in Georgia only to find that a Georgia state law had nullified the debt.
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