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Types of Bankruptcies

Learn about different types of bankruptcies, including liquidation, business reorganization, and personal reorganization. Explore key concepts like eliminating debt, protecting assets, and dealing with secured obligations. Get insights on exempt assets, co-signers, domestic obligations, and more.

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Types of Bankruptcies

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  1. Types of Bankruptcies • Chapter 7 Liquidation • Chapter 9 Municipality • Chapter 11 Business Reorganization • Chapter 12 Farm or Fisherman Reorganization • Chapter 13 Personal Reorganization

  2. Chapter 7 • Eliminate Debt • Start Over Financially

  3. Priority Debt • Not Discharged

  4. Secured Debt • SurrenderDischarged • Reaffirm Not Discharged • Redeem Partially Discharged

  5. Secured Debt • Surrender Discharged • ReaffirmNotDischarged • Redeem Partially Discharged

  6. Secured Debt • Surrender Discharged • Reaffirm Not Discharged • RedeemPartiallyDischarged

  7. Secured Obligation with a Credit Union • Credit Union Debts are Cross-Collateralized • Unsecured debts are actually secured • Must Reaffirm all or nothing

  8. Executory Contracts • RejectDischarged • Accept Not Discharged

  9. Executory Contracts • Reject Discharged • AcceptNotDischarged

  10. Unsecured • Unsecured Debt Discharged

  11. Assets Property -Debt -Exemptions May=Assets worth selling

  12. Assets Property Value - Debt Against the Property =Equity Equity -Costs of Sale = Net Value of Property Net Value of Property -Exemptions = Value Available for Creditors

  13. Assets Home FMV - Mortgage Debt - Cost of Sale (6% of Home FMV) - Homestead Exemption = Value Available for Creditors

  14. Common Individual Exemptions • Homestead $5 to 20,000 • Personalty $2 to 3,000 • Vehicle $2,500.00 • Business Tools $3,500.00 • Wedding Ring $500.00 • Living Room Furniture $500.00 • Bedding Unlimited • Clothing Unlimited (no Furs) • 401K Unlimited

  15. Co-Signers and Co-Obligors • Liable for Discharged Debt

  16. Domestic Support Obligations • Child Support and Alimony - Not Dischargeable • Property Settlements - Not Always Dischargeable

  17. Divorce Decrees • Divorce Decrees are not enforceable against Creditors

  18. Bank Accounts • Open a New Account before you File

  19. Court Costs, Attorney Fees, and Expenses • Attorney Fees $543.00 • Costs $299.00 • Expenses $123.00

  20. Recap of Chapter 7 • Priority Debt • Not Discharged • Secured Debt • Reaffirm, Surrender or Redeem • Executory Contracts • Accept or Reject • Unsecured • Discharged • Assets • Non-exempt items may be taken

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