Had Kershaw filed for Chapter 7 bankruptcy
protection from the start, he would have lost the house, but walked away from the entire debt.
1398 provisions, if a debtor files a Chapter 7 bankruptcy
and an appointed trustee sells the debtor's rental property, that property sale is not reported on the debtor's 1040.
281 BR 600 (WD PA 2002), S shareholders were allowed to retain (1) prepetition dividends and (2) tax refunds stemming from the use of the debtor's pre-petition net operating losses, rather than turning them over to the Chapter 7 bankruptcy
trustee for distribution to the debtor's creditors.
Although Stadler involved a Chapter 7 bankruptcy
and Mourad Chapter 11, the result was the same.
In the three months ending June 30, Chapter 7 bankruptcy
filings in the Central District of California, which includes the San Fernando Valley, jumped nearly 25 percent compared with the same quarter a year ago.
These figures reflect a return to 'normalcy' in which those who file chapter 7 bankruptcy
truly are bereft and without financial means to repay creditors," said Sommer.
Under the old bankruptcy law, the state determined the personal property debtors were allowed to keep with Chapter 7 bankruptcy
provided they'd maintained residency for at least three months.
When a reorganization plan acceptable to the court cannot be negotiated, a Chapter 11 filing can be used for liquidation, similar to a Chapter 7 bankruptcy
The typical Chapter 7 bankruptcy
begins when a distressed debtor contacts an attorney.
Under Chapter 7 bankruptcy
, a trustee will take inventory of the symphony's assets - from Copley Symphony Hall and an extensive music library down to the music director's podium - and sell them to pay creditors.
The goal is to move people toward Chapter 13, where filers arrange a five-year debt repayment plan, and away from Chapter 7 bankruptcy
, where most unsecured debts can be written off.
Rod Griffin, public affairs manager for Experian credit agency, says many consumers don't realize that a Chapter 7 bankruptcy
will remain on a credit report for 10 years, while a Chapter 13 bankruptcy will stay for seven years.