How does the Bankruptcy Code handle your business interests? How does the Bankruptcy Code handle your business interests? In most cases the Trustee will try to find a buyer to purchase your business in order to pay your bills. However, if the Trustee cannot find anyone to purchase your business, non-exempt property that you may need to run your business may be sold.
TITLE 11. BANKRUPTCY · UNITED STATES CODE
Chapter 5. Creditors, the Debtor and the Estate
Subchapter III. The Estate 11 USC § 541. Property of the estate
(a) The commencement of a case under section 301, 302, 303 of this title creates an estate. Such estate is comprised of all the following property, wherever located and by whomever held:
(1) Except as provided in subsections (b) and (c)(2) of this section, all legal or equitable interests of the debtor in property as of the commencement of the case.
(2) All interests of the debtor and the debtor’s spouse in community property as of the commencement of the case that is--
(A) under the sole, equal, or joint management and control of the debtor; or
(B) liable for an allowable claim against the debtor, or for both an allowable claim against the debtor and an allowable claim against the debtor’s spouse, to the extent that such interest is so liable.
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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