People in Vancouver who are contemplating bankruptcy are often torn between their desire to cancel their debts and to keep certain assets that may have created one of the debts -- the family car, for example. In a Chapter 7 proceeding, the debtor must turn over all assets to the trustee so that the assets can be sold and the cash from the sale used to pay creditors. Thus, the family car may be forfeited in return for canceling the loan that facilitated its purchase. The bankruptcy code contains one mechanism that may help resolve this dilemma -- a reaffirmation agreement.
As many businessmen in Vancouver have learned, dealing with a company on the verge of bankruptcy can be difficult. Payments for goods and services are often late or entirely non-existent, and the threat of a bankruptcy filing and the imposition of the automatic stay are constant threats. These risks are well known, but a lesser known risk can cause even more financial chaos -- the rejection by the trustee of an "executory contract."
The decision to file a petition in federal Bankruptcy Court can be very troubling. People in Vancouver worry about the impact on their credit rating and, in some cases, on their social standing. Moreover, the process can be complex and confusing. Can anything be done to ameliorate the anxiety?
Many people in Vancouver have overindulged in credit card purchases, and they are unable to make even the required minimum monthly payments. Caught between creditors seeking payments and lack of money to pay their debts, these individuals frequently see their situations as hopeless. Filing for bankruptcy is not a perfect remedy, but it has several advantages that can provide both short term and permanent relief. One of the most effective such provisions is the so-called "automatic stay."
Chapters 7 and 13 of the Bankruptcy Code have many differences, but one similarity is the compulsory meeting of the debtor and his or her creditors. The meeting is required by Sec. 341 of the Bankruptcy Code, and hence, such meetings are known as 341 meetings. Because the meetings are compulsory, an understanding of their procedure and significance can help a debtor navigate the bankruptcy process.
Many small business owners in Vancouver understand how seeking protection from creditors in bankruptcy court can be beneficial, but many of these owners are deterred from filing a Chapter 11 bankruptcy petition by their fears about the cost of the process. Fortunately, the United States Bankruptcy Code contains several provisions aimed to assist these businesses by creating what is called the small business case in a Chapter 11 bankruptcy.
Many residents of Vancouver who decide to seek protection under the federal Bankruptcy Act do not realize that they can designate certain assets as "exempt" from seizure. The problem for most people is choosing between the exemptions provided under Washington state law and the Bankruptcy Act. Both lists are exclusive, that is, a debtor cannot pick some state exemptions and then choose other federal exemptions.
Most people in Vancouver who decide to file a petition in bankruptcy expect to have their debts eliminated or significantly reduced. Sometimes, however, a debtor may find benefits to agreeing with the creditor to repay the debt in full even though the obligation is eligible to be entirely discharged in the bankruptcy proceeding. When this happens, the debtor may elect to enter into a "reaffirmation agreement" with the creditor.
People in Vancouver who are considering filing a bankruptcy petition have many questions, but the most common by far is the future of the family's home. Will the bank take it away, or must it be sold to satisfy the claims of creditors? The answer depends in part on the type of bankruptcy petition that is filed and in part on the value of the homestead.
One of the common questions asked by Washingtonians considering bankruptcy is whether all of their debts will be wiped off the books, or discharged, to use the technical term. The answer is "probably not." Congress has determined that, for reasons of public policy, certain types of debts cannot be discharged in a bankruptcy proceeding. Those reasons can be quite complex, but an enumeration of debts that cannot be discharged can provide helpful guidance.