Liquidating chapter 11 discharge

22-May-2019 06:37

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For example, an appointed trustee carries out the administrative duties of Chapter 7, Chapter 13, and other types of bankruptcy cases. The bankruptcy discharge, a court order releasing the debtor from personal liability for certain debts, is the main way this is accomplished.The debtor actually has very little interaction with the bankruptcy judge. The discharge also prohibits creditors or collections agencies from communicating with debtors.The main difference, as opposed to Chapter 7, is that the Chapter 13 filer typically remains in possession of property and makes payments to creditors through the trustee.The plan is based on the debtor's projected income over the life of the bankruptcy plan.The plan may be for as long as three years for Chapter 12 filings, and up to five years with court approval.

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The process normally involves a period of consolidation, which may include a reduction in work force.Instead of liquidating assets, Chapter 13 debtors work out a plan to repay creditors over a longer period of time, usually three to five years.

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