Chapter 12 Bankruptcy Procedure

Chapter 12 Bankruptcy Procedure

Bankruptcy LawChapter 12 Bankruptcy – Chapter 12 Bankruptcy Procedure

Arizona Chapter 12 Bankruptcy Procedure

The first step is to prepare all the required schedules and statements, listing the debtor’s current income and expenses, assets and liabilities, executory contracts and unexpired leases, and a statement of financial affairs. When the petition opening the case is filed a trustee will be appointed. This trustee is not part of the U.S. Trustee’s Office. Rather, the trustee is more like a Chapter 13 trustee. The trustee will collect payments from the Chapter 12 debtor and disburse them to the debtor’s creditors.

Within 90 days of the filing of the Petition, the debtor must file a Plan, which provides for payments of all the debtor’s disposable income for a term of 3 to 5 years. Disposable income is income left over after subtracting necessary expenses for the care of the debtor and his family, and for keeping the farming or fishing operations going.

After the Plan has been filed with the court, the judge will have 45 days to confirm the Plan. The judge will confirm the Plan if the Plan is feasible and meets the Chapter 12 requirements spelled out in the Bankruptcy Code. Creditors may appear at the confirmation hearing and present their arguments against confirming the Plan. Once the Plan is confirmed and the payments have been made for the length of time designated in the Plan, the debtor’s remaining debts will be discharged.

Need Legal Help?

If you need legal assistance with matters related to Immigration and/or Bankruptcy, contact us today to schedule a consultation.

Considering Bankruptcy?

If you are seriously considering Bankruptcy as an option to get out from under your debt,
contact us today to schedule a consultation.

Translate Language »