Are you familiar with the different types of bankruptcy? Most people have a vague notion that it has to do with being broke, and that is partially correct. It is a legal status imposed by a court order on an entity who can’t repay the debts owed to its creditors. The entity may be in the form of an individual or a company. A number of celebrities have filed for bankruptcy such as Burt Reynolds. These are often followed in the grocery store tabloids and entertainment news shows. One of the most famous corporate bankruptcies occurred in 2012. This was for Hostess Brand bakery goods founded in 1930. The public could no longer buy Twinkies! Reaction to the news was unfavorable. Twitter users tweeted 26,807 tweets lamenting the demise of Twinkies between 9:15 AM and 10:15 AM on November 16th. Even Senator John McCain bemoaned the disappearance of the snack cake with his tweet saying,”…what will we do without deep fried Twinkies at the Iowa State Fair?”
In the US there are six kinds of bankruptcy listed under the Bankruptcy Code. These types are referred to as Chapters. So there is Chapter 7 bankruptcy which is the least complicated and quickest type for both individuals and businesses; Chapter 9 is for municipal debts; Chapter 11 is a type of financial reorganization for corporations and sometimes individuals; Chapter 12 is for fishermen and family farmers; Chapter 13 involves a payment plan for individuals; and Chapter 15 is for foreign or international cases. Partnerships and corporations must have a lawyer to file for bankruptcy. An individual may file for Chapter 13 Bankruptcy in Indianapolis, IN, but the rules are very complex and technical. That is why it is strongly recommended that individuals seek legal counsel such as The Wright Law Group LLC.
If you and your lawyer decide that going with Chapter 13 Bankruptcy in Indianapolis, IN is in your best interest, there are a few things you should understand. Chapter 13 means that you, the debtor, will propose a plan to pay your creditors off over a 3 to 5 year period. This is a written plan detailing all transactions and repayments. This plan must commence within 30 to 45 days after the case has begun. There is a lot more to Chapter 13 Bankruptcy, so if you have any questions please Visit The Wright Law Group LLC.
