A reorganization plan is a document that establishes how a debtor will pay their creditors. The program divides creditors into classes. It specifies the demands of each class and provides ways to implement the program. The debtor has the exclusive right to submit a plan up to 120 days after the filing of the claim. After this period of exclusivity, creditors can submit their proposal.
After declaring bankruptcy, can creditors still contact you?
No. When bankruptcy is declared, an automatic stay prohibits creditors from trying to collect the debts. These efforts include the prohibition of contacting the client to collect debts. When a person hires a lawyer, it is usually required that all communication with a creditor be through a lawyer.
Can an employer discriminate against a person for declaring bankruptcy?
In general, the government and private sector will not discriminate against a person for declaring bankruptcy. Federal laws prohibit employers in the private sector from discriminating about employment if the discrimination is based solely on the declaration of bankruptcy.
What are bankruptcy exemptions?
Some kinds of properties are protected (or exempt) from bankruptcy proceedings. It is imperative to know what will be liquidated and what property is protected or exempt. U.S. law allows individuals to excuse certain types of real estate, including some personal and intangible property from the action. State law protects these assets from being distributed among creditors.
Generally, excused assets include automobiles up to a specific dollar value, the capital of the person’s home, and any necessary tools of the debtor’s trade. Exemptions are requested through annex C, which is essential to complete. If there are no objections to the exceptions mentioned within a specified time (set by the courts), these assets will not be part of the debtor’s bankruptcy status and cannot be used.
Determining what assets will be exempted is essential. In fact, people should learn if they can shield their assets from their creditors. Doing so can be one of the most critical and challenging aspects of bankruptcy. It is vital to consult with bankruptcy attorneys if there are doubts regarding the subject of exempt property.…