The main difference between Chapter 7 and Chapter 11 bankruptcy is that under a Chapter 7 bankruptcy filing, the debtor’s assets are sold off to pay the lenders (creditors) whereas in Chapter 11, the debtor negotiates with creditors to alter the terms of the loan without having to liquidate (sell off) assets.
What’s the difference between bankruptcy Chapter 7 and Chapter 13?
With Chapter 7, those types of debts are wiped out with your filing’s court approval, which can take a few months. Under Chapter 13, you need to continue making payments on those balances throughout your court-instructed repayment plan; afterwards, the unsecured debts may be discharged.
How do I know if I qualify for bankruptcy Chapter 7?
Bankruptcy eligibility is determined by a Licensed Insolvency Trustee (LIT). This is the same individual that oversees a consumer proposal filing. If you can’t pay your bills and owe more than your assets are worth, you are officially declared insolvent. This means you are eligible to file.
What is the definition of equitable distribution in divorce?
Definition of equitable distribution: The fair, but not necessarily equal, division of marital assets and liabilities acquired during a marriage. There is more than meets the eye on this subject and in the majority of cases, this issue is much too complex to try to resolve on your own.
How are assets and liabilities divided in a divorce?
The equitable division of the assets in divorce is just one piece of a larger picture. In the example above, we discussed the “assets” side of the equation. But also included is the equitable distribution of liabilities. And for many spouses, the debts accumulated during or brought into the marriage is greater than the assets.
Is there an equitable division of marital property?
No. An equitable division of marital property is not always an equal division. Rather, the court will divide property between spouses in a way that it considers fair. In the majority of cases, a fair division will be an equal (50/50) division.
Are there any states that have equitable distribution?
“New Jersey, Illinois, Pennsylvania, New York, Michigan, and 36 other states are equitable distribution states, so whatever the parties deem to be fair and equitable is how their marital property and liabilities will be divided. But not all assets and liabilities are created equal. Some may be pre-tax, while others are post-tax.
