Too many credit card
bills? For immediate help,
call toll free for alternative to bankruptcy.
Automatic Stay - Precludes and halts all
collection activities from creditors and even the IRS. You can even
get seized property back from the IRS in a chapter 13 or chapter 11.
Assets - Assets are generally
anything of value. For example: property, real estate, cash, notes,
stocks, bonds, accounts receivables, securities, and any other item of
value that could be used to pay off debt.
Chapter 7 Bankruptcy - Straight bankruptcy- may
be voluntary or involuntary. Liquidation of all non-exempt assets.
Taxes in order of precedence - Federal Income Tax, Withholding tax,
Employment tax, Excise tax, Customs and duty tax, Any pecuniary loss
penalty on any of the foregoing.
Bankruptcy- Simply put, is the reorganization of consumer debt with a
new payment schedule.
Chapter 11 Bankruptcy- An individual may file
under this chapter but it is used primarily for business debt. Like a
chapter 13, this chapter halts collection activities an allows the
business debtor to restructure their payments. This applies to business
debt that exceeds $250,000 in unsecured debt and $750,000 in secured debt.
Total debt may not exceed $2,000,000.00
Conversion- If the court believes the
petitioner can pay all or a part of his bills it can deny a chapter 7
and convert to a chapter 13.
Cramdown - The courts authority to force
acceptance by creditors, stock holders, irs etc of a reorganization or
liquidation plan as empowered by the bankruptcy code.
Creditor - A person or
entity to whom money is due, or one who has extended credit and has a
vested interest in getting paid.
Discharge - To release
from debt after fulfilling ones obligations
Exemption - Assets that
cannot be touched by creditors during bankruptcy proceedings.
Insolvent - Unable to
pay ones debts.
Involuntary Bankruptcy -
This is when creditor take legal action against a debtor and files
petition in court.
Secured Debt - debt
that is backed by collateral. For example: mortgage or car loan.
Substantial Abuse- dismissal of a chapter 7
filing because income of petitioner is sufficient to service debt.
Tax Abatement- After a bankruptcy court has
discharged any tax liability as outlined in the bankruptcy codes, a
form (3870) will be filed with the IRS as official notice.
Trustee - Person appointed to oversee the
completion of a bankruptcy filing.
Unsecured Debt - debt
that is not backed by collateral. For example: credit cards, medical
bills, utility bills.
Voluntary Bankruptcy -
This is when the debtor takes the initiative to file bankruptcy on their
own rather than being forced by creditors.