0
No...basically no prepetition debts are paid...and bonds certainly may never be paid. It many cases, the bondholders get some stock in the newly reorganized company as payment.
Wiki User
∙ 15y ago
Add your answer:
Earn +20 pts
Can an attorney re-open a chapter 7 bankruptcy that was previously discharged due to the petitioner's failure to pay legal fees?
No they cannot, this is why attorneys ALWAYS want to be paid in full before doing a chapter 7 BK.
What requirements must be met for creditors to file an involuntary bankruptcy petition under chapter 7 of the federal bankruptcy code?
The debtor has not been paying its bona fide debts as they become due
If you have a chapter 7 discharged and then something happens with your home can you open a chapter 13 to save your house then you change your mind and the chapter 13 is dismissed what does thi?
What happens if you have paid all fees for a chapter 7 bankruptcy and your trustee tells you to turn over your income tax check and you don't because you are laid off and you are using the income tax check to pay bills and medical expenses and the trustee has threaten to revoke your bankruptcy due to non payment of your income tax check
Would you have to pay monthly notes in filing chapter 7 on my vehicle?
You don't file bankruptcy "on your vehicle." You file bankruptcy to discharge all your debts. You don't get to pick and choose which creditors. But, secured creditors either have to continue to be paid or you have to surrender the collateral, in which case the balance due on the secured note would be discharged.
What will happen where Chapter 13 bankruptcy is dismissed due to default in payments?
Many people are unable to maintain the rigid repayment plans (and strict budget) that go along with Chapter 13 bankruptcy. One option is to switch to Chapter 7 bankruptcy. This can be done (one time) without court approval, although if you ever wish to switch back to Chapter 13 then the court will be involved. Before switching I would recommend looking at the different characteristics of each type of bankruptcy.
Can Florida law foreclose on condo for non paid condo fees if owner filed chapter 7?
Your governing documents may provide for leverage against both your property title and you personally, for your obligation to pay your assessments. As well, assessments due prior to the date of filing are treated differently than assessments due after the date of your bankruptcy filing. Your bankruptcy counsel can answer your question.
Can your Chapter 11 be dismissed due to plan payments?
Chapter 11 is a corporate business bankruptcy where a reorganization plan is made while operating under protection. It is not a Chapter 13 with a specific payment plan.
Your student loans are listed under Chapter 13 discharge papers with the full amount owed then the amount paid to them by the Trustee Does this mean it is settled for that amount or they are still owe?
Almost all student loans are not dischargeable unless the bankruptcy court has held a hearing on dischargeability and determined there is a hardship. In most jurisdictions, a student loan is treated like any unsecured credit claim and paid at the same rate as other unsecured claims, but the balance, including accrued interest, must be paid. Unless the bankruptcy court has determined, after a hearing, that the loans need not be repaid due to hardship, the balance due, including accrued interest, must be paid after the Chapter 13. For the Chapter 13 Plan, student loans are treated as unsecured credit claims and must be paid at the same rate as the other unsecured claims in the Plan. Except in the case of a 100% plan, there will be a balance due after the 13.
How can a person repair their bad credit to get a mortgage loan?
There are only way to repair bad credit due to a mortgage loan is time. All debt information related to late payments and Chapter 13 bankruptcy come off a credit report after 7 years. Chapter 7 bankruptcy (total liquidation) remains for 10 years. Not that some items associated with defaulted mortgages, such as tax liens, last forever until paid and even after paid may remain for 7+ years.
Can all taxes be paid off in BK?
It depends on what type of Bankruptcy you are filing. The first rule states that your tax debt must be related to a tax return that was due at least three years before the date you filed for bankruptcy. The due date would include all the extensions granted. The second rule states that the tax return that you have filed must have been done at least two years before the date you filed for bankruptcy. The date that you actually filed the return would be the day from which the two years will be calculated. According to the third rule, when you file for bankruptcy, the IRS assessment of your tax must be at least 240 days old. As per the fourth rule, the tax return that you have shown cannot be fraudulent or frivolous. The fifth rule states that you cannot be guilty of tax evasion.Under Chapter 7If you are filing for Chapter 7 bankruptcy, the eighth pre-petition taxes would be paid off after liquidating your assets. However, they will only be paid off if prior claims on the list are already paid off. If after paying off the secured creditors, any unsecured ones funds are left, then only the tax debts will be paid off. Otherwise you will secure a discharge for these tax debts.When it comes to paying eighth priority pre-petition taxes, different rules apply depending on the bankruptcy chapter that you have filed under.If you are filing under Chapter 13, taxes that are over 3 years old can be paid off.
Is Six Flags going to close due to Bankruptcy?
No, Six Flags filed for Chapter 11 bankruptcy rather than Chapter 7. Chapter 11 bankruptcy is filed so that a company can restructure it's debt, eliminating much of it, and come out a stronger company. They may close some under performing parks or sell them to another corporation but the parks should remain open in the meantime.
Why did CIT Group file for Chapter 11 bankruptcy?
Its bankruptcy filing was largely due to the decline in housing and mortgage markets. It did receive $2.3 billion in Troubled Asset Relief Program (TARP) funds but was ultimately not enough for the firm to avoid bankruptcy.
