Types of BankruptciesTypes of Bankruptcies

• Chapter 7Chapter 7 LiquidationLiquidation

• Chapter 9Chapter 9 MunicipalityMunicipality

• Chapter 11Chapter 11 Business ReorganizationBusiness Reorganization

• Chapter 12Chapter 12 Farm or Fisherman ReorganizationFarm or Fisherman Reorganization

• Chapter 13Chapter 13 Personal ReorganizationPersonal Reorganization

Chapter 7Chapter 7

• Eliminate DebtEliminate Debt

• Start Over FinanciallyStart Over Financially

Priority DebtPriority Debt

• NotNot Discharged Discharged

Secured DebtSecured Debt

• SurrenderSurrender DischargedDischarged

• Reaffirm Reaffirm Not DischargedNot Discharged

• Redeem Redeem Partially DischargedPartially Discharged

Secured DebtSecured Debt

• Surrender Surrender DischargedDischarged

• ReaffirmReaffirm NotNot DischargedDischarged

• Redeem Redeem Partially DischargedPartially Discharged

Secured DebtSecured Debt

• Surrender Surrender DischargedDischarged

• Reaffirm Reaffirm Not DischargedNot Discharged

• RedeemRedeem PartiallyPartially DischargedDischarged

Secured Obligation with a Secured Obligation with a Credit Credit UnionUnion

• Credit Union Debts are Cross-Credit Union Debts are Cross-CollateralizedCollateralized

• Unsecured debts are actually securedUnsecured debts are actually secured

• Must Reaffirm Must Reaffirm all or nothingall or nothing

Executory ContractsExecutory Contracts

• RejectReject DischargedDischarged

• AcceptAccept Not DischargedNot Discharged

Executory ContractsExecutory Contracts

• RejectReject DischargedDischarged

• AcceptAccept NotNot DischargedDischarged

UnsecuredUnsecured

• Unsecured DebtUnsecured Debt DischargedDischarged

AssetsAssets

PropertyProperty

--DebtDebt

--ExemptionsExemptions

May=Assets worth sellingMay=Assets worth selling

AssetsAssets

Property Value Property Value - - Debt Against the PropertyDebt Against the Property == EquityEquity

EquityEquity-- Costs of SaleCosts of Sale = Net Value of Property= Net Value of Property

Net Value of PropertyNet Value of Property

-- Exemptions Exemptions = Value Available for Creditors= Value Available for Creditors

AssetsAssets

Home FMVHome FMV

- Mortgage Debt- Mortgage Debt

- Cost of Sale (6% of Home FMV)- Cost of Sale (6% of Home FMV)

- - Homestead ExemptionHomestead Exemption

= Value Available for Creditors= Value Available for Creditors

Common Individual Common Individual ExemptionsExemptions• HomesteadHomestead $5 to 20,000$5 to 20,000• PersonaltyPersonalty $2 to 3,000$2 to 3,000• VehicleVehicle $2,500.00$2,500.00• Business ToolsBusiness Tools $3,500.00$3,500.00• Wedding RingWedding Ring $500.00$500.00• Living Room FurnitureLiving Room Furniture $500.00$500.00• BeddingBedding Unlimited Unlimited • ClothingClothing Unlimited (no Unlimited (no

Furs)Furs)• 401K401K UnlimitedUnlimited

Co-Signers and Co-ObligorsCo-Signers and Co-Obligors

• LiableLiable for Discharged Debt for Discharged Debt

Domestic Support Domestic Support ObligationsObligations• Child Support and Alimony - Child Support and Alimony - NotNot

DischargeableDischargeable

• Property Settlements - Property Settlements - Not AlwaysNot Always Dischargeable Dischargeable

Divorce DecreesDivorce Decrees

• Divorce Decrees are Divorce Decrees are notnot enforceable enforceable against Creditorsagainst Creditors

Bank AccountsBank Accounts

• Open a New Account Open a New Account beforebefore you File you File

Court Costs, Attorney Fees, Court Costs, Attorney Fees, and Expensesand Expenses

• Attorney Fees Attorney Fees $543.00$543.00

• CostsCosts $299.00$299.00

• ExpensesExpenses $123.00$123.00

Recap of Chapter 7Recap of Chapter 7

• Priority DebtPriority Debt– Not DischargedNot Discharged

• Secured DebtSecured Debt– Reaffirm, Surrender or RedeemReaffirm, Surrender or Redeem

• Executory ContractsExecutory Contracts– Accept or RejectAccept or Reject

• Unsecured Unsecured – DischargedDischarged

• Assets Assets – Non-exempt items may be takenNon-exempt items may be taken