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Chapter 11 Bankruptcy Article
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The Serious Business of Bankruptcy
from:The United States government provides a means for people who have too much debt to obtain a new start by eliminating the heavy debt burden. A bankruptcy is not intended to be an easy way to eliminate debt. It is meant to be a way to once again live a normal life without the stress of unsolvable financial problems. When you have too much debt and little hope of being able to reduce the debt without help, filing bankruptcy may be the best alternative.
People can find themselves saddled with heavy debt for a million different reasons. Common reasons for finding yourself with spiraling debt are having too many credit cards with high interest rates, loss of employment, major hospital bills and living beyond your means. Having to file bankruptcy doesn’t mean you are financially irresponsible. It only means that circumstances have led to unmanageable debt.
It can be thoroughly miserable to be drowning in debt. You learn to fear getting the mail out of the mailbox because of the constant bills. The collection calls are stressful and constant. No matter how much you pay on high interest credit cards the interest keeps the balance growing. Your credit gets ruined, and there seems to be no hope.
The purpose of filing bankruptcy is to start over again by eliminating or reducing the debt you owe. The primary purpose is to give you a chance to begin again with a clean slate. It is impossible to live a normal life when debt is uncontrollable. The one thing bankruptcy is not intended to do though is help you evade debt you are capable of paying.
Because bankruptcy is not intended to avoid paying debt you can afford, certain monies and properties will be distributed to creditors according to a method determined fair by the United States Bankruptcy Court. The court will determine what assets you can keep and which must be sold for debt settlement. You may also have to pay some of your debt with money on hand if you have more than a designated amount.
There are several types of bankruptcies called chapters. The chapters are intended to address the fact that there are certain circumstances which vary enough to justify different treatments. Most individuals file chapter 7 or chapter 13 bankruptcies.
The chapter 7 bankruptcy is called a “straight bankruptcy” in which all debt is written off that cannot be settled with asset sales. The chapter 13 bankruptcy reorganizes your debt payments into an affordable repayment plan. In both cases the creditor calls are stopped, and you can begin to live a normal life again. In fact, once you notify the court you are asking for bankruptcy protection, all of the stressful collection efforts stop. These include lawsuits, foreclosures, evictions, debt collectors and even repossessions. You get almost immediate relief.
There are other bankruptcy chapters including chapter 11 for corporations and chapter 12 for farmers. These chapters are specifically used to eliminate particular types of debt such as non-consumer debt and farm related debt.
Filing bankruptcy is serious business, and it is also complicated. So you should always consult an attorney specializing in bankruptcies.
Chapter 11 Bankruptcy Specific links
Chapter 11 Bankruptcy News
Houghton Mifflin files Chapter 11 bankruptcy - Reuters
 Toronto Star | Houghton Mifflin files Chapter 11 bankruptcy Reuters ... 21 (Reuters) - Houghton Mifflin Harcourt Publishers Inc, whose textbooks have been a staple in American schoolhouses for decades, filed for Chapter 11 bankruptcy protection on Monday after agreeing with creditors to eliminate $3.1 billion of debt. Houghton Mifflin files for Chapter 11 bankruptcy protection to wipe out $3.1 ... Houghton Mifflin Harcourt Publishers Files Chapter 11 Bankruptcy Publisher Houghton Mifflin Files for Chapter 11 |
Alex Hotel, Flatotel Owners File for Chapter 11 Bankruptcy - Bloomberg
 Blogcritics.org | Alex Hotel, Flatotel Owners File for Chapter 11 Bankruptcy Bloomberg The owners of New York's Alex Hotel and Flatotel filed for Chapter 11 bankruptcy protection as part of an agreement with lenders who in January won a foreclosure lawsuit for unpaid loans. 205 East 45 LLC, the owner of east midtown Manhattan- located ... Supreme Court set to weigh in on cramdown debate Supreme Court decides Hall v. United States |
Gunthers Transport owner files for Chapter 11 bankruptcy - Baltimore Business Journal
Gunthers Transport owner files for Chapter 11 bankruptcy Baltimore Business Journal The owner of a Hanover trucking company that federal trucking regulators forced off the road last year has filed for Chapter 11 bankruptcy protection. Mark David Gunther Sr., owner of Gunthers Transport and Gunthers Leasing Transport Inc., ... |
Reno's Silver Legacy files for Chapter 11; Indian casinos a factor - Sacramento Bee
 News10.net | Reno's Silver Legacy files for Chapter 11; Indian casinos a factor Sacramento Bee The mammoth 17-year-old casino filed for Chapter 11 bankruptcy reorganization last week after a deal to restructure its $142.8 million in debts fell apart. The 37-story, 1700-room resort will stay open. In a letter posted on the resort's website, ... MGM Property Files for Bankruptcy Reno's Silver Legacy Resort files for bankruptcy Silver Legacy the latest gaming property to seek a fresh financial start |
Contour Med Files Chapter 11 Bankruptcy - Arkansas Business Online
Contour Med Files Chapter 11 Bankruptcy Arkansas Business Online By Mark Friedman Contour Med Inc. of Little Rock filed for chapter 11 bankruptcy reorganization on May 11 and needed an emergency loan of $40000 just to keep its doors open. It listed debts of at least $5.98 million, but it could be as high as $10 ... |