If you own or operate a business, and you file for Chapter 13 Bankruptcy, you will be allowed to run your business, but you may be required by the appointed Trustee to submit an outlilne of monthly operating expenses and income.
TITLE 11. BANKRUPTCY · UNITED STATES CODE
Chapter 13. Adjustment of Debts of an Individual with Regular Income
Subchapter I. Officers, Administration, and the Estate
11 USC § 1304. Debtor engaged in business
(a) A debtor that is self-employed and incurs trade credit in the production of income from such employment is engaged in business.
(b) Unless the court orders otherwise, a debtor engaged in business may operate the business of the debtor and, subject to any limitations on a trustee under sections 363(c) and 364 of this title and to such limitations or conditions as the court prescribes, shall have, exclusive of the trustee, the rights and powers of the trustee under such sections.
(c) A debtor engaged in business shall perform the duties of the trustee specified in section 704(8) of this title. [sic--BAPCPA made each numbered subsection part of subsection (a)]
With foreclosures at record levels nationwide you may be able to file a Chapter 13 and save your home. Even if you are thousands of dollars behind in your payments a Chapter 13 filing could stop the foreclosure and give you time to pay back the arrearage and get back on track. Call us today and we can explain how Chapter 13 may work for you.
As credit card debt underlies many bankruptcy filings, it is not surprising that prospective bankruptcy filers want to know if they should stop paying credit card debt if they plan to file for bankruptcy.
At first blush, the answer to this question should be obvious - why should anyone “throw good money after bad?” However, I think that your decision in this matter should merit some thought.
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Credit card companies, or any creditor for that matter, can sue a debtor and may be able to take the debtor’s home, real estate, car, boat or any other personal property they own. People seem to think that if they don’t sign something that gives a creditor a lien on collateral, the creditor can’t take it. That is not true. Further fueling this misconception is the advise of so-called money experts like Suze Orman, who I have personally heard give false information that creditors can’t take a person’s home. Creditors can sue a person and take their home, car and other property - and they do!
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