Chapter 7 Bankruptcy Law

Beneath the grant of authority provided by Write-up I, Section eight, of the United States Constitution, Congress enacted the ” Bankruptcy Code” in 1978, which is codified as title 11 of the United States Code. From October 17, 2005, the courts should charge a $220 case filing charge, a $39 miscellaneous administrative charge, and a $15 trustee surcharge, which should be paid to the clerk of the court upon filing. Having said that, person debtors may perhaps spend in installments with the court’s permission.

To qualify for relief below chapter 7 of the Bankruptcy Code, the debtor can be an person or company entity. This eligibility is discussed below U.S.C 11 subsections 101(41), 109(b). An person may perhaps not be a debtor unless he or she has received suitable credit counseling inside 180 days ahead of filing. If the ‘current month-to-month income’ of the debtor is extra than the state median, the Bankruptcy Code needs application of a ‘means test’. With the petition, the debtor should also file with the court schedules of assets and liabilities, present revenue and expenditures, unexpired leases, a statement of economic affairs and a copy of the tax returns. Also, debtor should present a list of all creditors and claims, the supply, quantity, and frequency of the debtor’s revenue, a list of all of the debtor’s home and a detailed list of the debtor’s month-to-month living expenditures.

Beneath the U.S.C. 11 Section 362, the ‘Automatic Stay’ on collection action is place so that creditors may perhaps not initiate or continue lawsuits or demand payments. U.S.C. 11 section 721 and 726 discusses the part of the impartial trusty who administers the case, operates the company of debtor and liquidates the debtor’s nonexempt assets. The trustee holds a meeting of creditors involving 20 and 40 days just after the petition is filed. At the meeting, the trustee puts the debtor below oath, and each the trustee and creditors may perhaps ask concerns. The debtor should cooperate with the trustee and present any documents that the trustee requests.

A discharge provided according to U.S.C 11 section 727, releases person debtors from private liability for most debts and prevents the creditors owed these debts from taking any collection actions against the debtor. The court may perhaps revoke a chapter 7 discharge on the request of the trustee or creditor, if the debtor obtained the discharge via fraud.

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