Individual Bankruptcy:An individual can institute a bankruptcy proceeding under Chapter 7, Chapter 11, or under Chapter 13. The most common type is the chapter 13. You can also convert your Chapter 13 case to Chapter 7 case. If your secured debts under Chapter 13 exceed the limit of the value mentioned under chapter 13, the only option is to file under chapter 11. Exempted Properties and Rights:If you file a petition under chapter 7 your residence, car, household goods and furnishings, clothing, appliances, books, pets or musical instruments, tools of your trade, life insurance, health aids up to a value of certain dollars fixed under chapter 7 of the code shall be kept with you. Your rights to receive social security, unemployment, veteran’s benefits, disability, illness, support, and crime victim’s reparations will not be affected. In order to avail the benefits under this chapter consult a Bankruptcy attorney in your area. Automatic Stay:Once you file the bankruptcy petition the automatic stay comes in to affect. Your property is protected against the creditors from foreclosure, repossession, etc. The automatic stay continues to operate till the final disposal of the case. |
