Cincinnati chapter 7, Cincinnati chapter 11, Cincinnati chapter 12 and Cincinnati chapter 13, are not part of the travel log diaries of some wayward adventurer that never got got out of Ohio. They are not chapters of the Shrine’s or Moose Lodge either. These are different types of bankruptcy that can be filed. They are very different in nature but aren’t difficult to comprehend. Each type of bankruptcy is designed for specific situations and allows for different things.
Emily had a really unlucky couple years that destroyed her financial security. She was laid off and started paying bills using credit cards knowing that her financial situation would improve. She couldn’t afford the Cobra payments to maintain her health insurance and then she got hit with several medical emergencies. Her assets were few, a car and small boat, some art she’d collected over the years. Her attorney suggested she file for chapter 7 since most of her debt was dischargeable. She had no student loans, nor was her debt linked to criminal activity. She wasn’t trying to get rid of a court imposed fine or child support and alimony. Her assets would be liquidated and the debts would be paid from the proceeds. Since she didn’t have a lot of assets to protect she would be able to clear the debt and begin again.
Tom has many assets so he doesn’t want to consider Emily’s path. Tom has a good work and consistent influx of capital. He made a couple of bad investments and got stuck holding product with no value. His debt isn’t huge, the unsecured debt is less then $200,000. He wants to keep his assets and property so his lawyer suggests he file for chapter 13. He will make regular contributions to a trustee who will oversee the payment to the creditors at anything from 10 to 100 percent of the debt over several years. Tom’s brother Dale is also struggling. He owns a farm and is wrestling with debt he accrued after three years of drought and bad harvests so he will reorganize using the chapter known as 12. This is like thirteen, but is created for farmers so they can retain their property and pay down their debt.
Ellen is the head of a medium size business that took a beating. The company has debts too large to file under 13. It also has a new operational group and a strong revised business plan. By filing under the chapter known as 11, the company will be able to continue running and reorganize itself. A trustee will be appointed and a creditors committee will decide if the new plan holds promise. The debts will be paid through liquidated assets or through future revenue the company earns.
There are many forms of bankruptcy created to help businesses and individuals get a second chance. In these times of economic turmoil more and more people are considering their options under the bankruptcy laws.
Connor R. Sullivan recently worked with a Cincinnati Chapter 11 bankruptcy attorney while conducting research for a new article. His daughter was offered a legal internship with a Cincinnati Chapter 13 bankruptcy attorney during the summer. Grab a totally unique version of this article from the Uber Article Directory
