Cincinnati chapter 7, Cincinnati chapter 11, Cincinnati chapter 12 and Cincinnati chapter 13, are not entries into a travel log diaries of some wayward adventurer that never got across the bridge into Kentucky. They are not chapters of the Shrine’s or the skull and bones either. These are various types of bankruptcy that can be filed. They vary wildly in nature but easily understood. Each type of bankruptcy is designed for specific situations and allows for different things.
Emily had a pretty bad decade that destroyed her financial security. She lost her job and started paying bills using credit cards knowing that her financial situation would improve. She couldn’t manage the Cobra payments to maintain her health insurance and then she got hit with several medical emergencies. Her assets were few, a car and small boat, and a few pieces of art. Her lawyer suggested she file for chapter 7 since most of her debt was dischargeable. She didn’t have a lot of student loans, nor was her debt obtain through fraud or criminal behavior. She wasn’t trying to get rid of a court imposed fine or payments of alimony or child support. Her assets would be sold and the debts would be paid from the proceeds. because she had few assets to protect she would be able to clear the debt and begin again.
Tom has a lot more to lose so he doesn’t want to consider Emily’s path. Tom has a steady job and consistent influx of capital. He made a couple of bad investments and got stuck holding product with no value. His debt isn’t huge, the unsecured debt is less then $200,000. He would like to keep his assets and property so his lawyer recommends he file for chapter 13. He will make payments to a trustee who will oversee the payment to the creditors at anything from 10 to 100 percent of the debt over several years. Tom’s cousin Dale is also struggling. He owns a farm and is struggling to pay off debt he racked up after three years of drought and bad harvests so he will reorganize using the chapter known as 12. This is like thirteen, but is designed for farmers so they can retain their property and pay down their debt.
Ellen is the CEO of a medium size business that suffered in the recession. The company has debts too big to file using 13. It also has a new operational group and a smart, clear business plan. By filing under the chapter known as 11, the business will be able to continue operating and reorganize itself. A trustee will be appointed and a creditors committee will decide if the new plan holds promise. The debts will be paid through liquidated assets or through future revenue the company earns.
There are many forms of bankruptcy designed to help businesses and individuals get a second chance. In these times of economic turmoil more and more people are discovering their options under the bankruptcy laws.
Connor R. Sullivan recently worked with a Cincinnati Chapter 11 bankruptcy attorney while conducting research for a new article. His daughter was offered a legal internship with a Cincinnati Chapter 13 bankruptcy attorney during the summer.
{ 0 comments… add one now }