A look at some of the bankruptcy filings in New York, 23 of which were published in a recent list, shows little diversity between different types of filings. Included were counts of Chapter 7 bankruptcy and Chapter 13 – notably missing were Chapter 11 and Chapter 12. Definitions were also published, explaining things like how Chapter 11 means that a court will supervise the reorganization of the company or how Chapter 13 means that a plan is established to pay off what is owed.
Anyone who is considering either a personal bankruptcy or one that is related to a business – both of which were included on this list – should be aware of their various legal options and what they mean. People need to know that not all types of bankruptcy are the same, and that filing with the right type can help them get out of debt and move forward, despite financial troubles.
One example of a Chapter 13 filing was connected to a business known as Creative Kids Childcare, which was the previous name a company was operating under before the owner filed under her own name. The company was filing for the amount of $12,757. Since it is a Chapter 13 filing, a repayment plan will likely be drafted.
However, the majority of the list was related to Chapter 7 bankruptcy claims. These types of filings allow the creditor to sell off the assets that the person or business owns. The creditor then gets the money from the sale, and the debt is cancelled. Out of the 23 cases that were listed, 21 of them were for Chapter 7, while only two were for Chapter 13. Again, getting advice on such matters can help any anyone facing bankruptcy decide how to file.
Source: The Post-Standard, “Onondaga County bankruptcies: April 10” No author given, Apr. 15, 2014by