There are several chapters of the Bankruptcy Code. For reasons of history and tradition, all of the chapters but one have odd numbers.
Chapters 1, 3 and 5 apply to all forms of bankruptcy. Chapter 1 has general provisions, Chapter 3 concerns case administration and Chapter 5 has provisions dealing with creditors, the debtor and the case under all of the forms of bankruptcy.
Chapter 7 is often called "straight" bankruptcy, because none of the debts are paid back. A debtor files the appropriate papers, listing assets and liabilities, and providing other required information. If all is well, after one court appearance, the debts are discharges and the debtor gets a fresh start.
Chapter 9 is for the reorganization of the debts of a municipality.
Chapter 11 is for reorganizations, and is the chapter corporations file under. Several airlines, Macy's, casinos, Enron and many other companies, large and small, have filed under this chapter.
Chapter 12 is for the reorganization of the debts of a family farmer or a family fisherman.
Chapter 13 is for the reorganization of debts of individuals.
Chapter 15 is new to the bankruptcy code and is for multinational companies.
Our office practices only Consumer Bankruptcy Law, which means we assist only individuals in Chapter 7 and Chapter 13.
Chapter 7
If all of your property is exempt, and your income is not above certain limits, you would file under Chapter 7 of the Bankruptcy Code. Under Chapter 7, you do not have to pay back any of your debts.
Chapter 13
Chapter 13 - The reasons you might file under Chapter 13 include:
- If some of your property that you want to keep is not exempt, by filing under Chapter 13 and paying some of your debts back, you would get to keep the non-exempt property. This might occur if your house had more than $100,000 in equity, or the value of your car, after subtracting the balance on the loan, if any, was more than $2,400.
- If you fell behind on your mortgage payments you can put the arrears in a plan and pay them off over 3 to 5 years. You would have to make your new mortgage payments as they became due, and if you did all this, you would come out of the plan current on your mortgage.
- Debtors with higher income may be required under the new law to file under Chapter 13 and pay some of their debts back.
If you need assistance with a bankruptcy or to stop creditor harassment contact us today for a free consultation at 718-544-0500.
Free consultations • Conveniently located in Forest Hills near highways and several major bus and subway lines
Allan R. Bloomfield
Attorney at Law
118-21 Queens Blvd. Suite 616
Forest Hills, NY 11375
Phone: 718-544-0500 | Email
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Allan R. Bloomfield represents clients in Chapter 7, Chapter 13, and consumer protection cases in Queens County and New York County, including Queens, Brooklyn, Manhattan, the Bronx, and New York, NY.