Liquidation not going to be allowed?

[Kaabi]

I heard that soon bankruptcy liquidation won't be allowed, and only the other type will remain. Is this true?

[Goldking]

WELL, KAABI
Will you please clarify what is liquidation?

[bct]

Originally Posted by Kaabi

I heard that soon bankruptcy liquidation won't be allowed, and only the other type will remain. Is this true?

where did you hear this anyway?
i dont think that is the case

[Melos]

Chapter 7 bankruptcy, which is total dismissal of all your debts (as opposed to Chapter 13 which is devising a reduced amount payment plan) has gotten more difficult to file, but it is not gone. Basically, you will only be able to get rid of all your debts if you are living well under the average income for the state you are living in and have less than $100 of disposable income per month.

[r8rpwr]

Some of the recent changes to the U.S. bankruptcy laws are:

- Mandatory credit counseling in most cases

- Stricter requirements to declare chapter 7 (liquidation). If your income is above a certain amount, you cannot declare chapter 7 but must instead file under the repayment plan laws, which is chapter 13.

- Fewer automatic stays (in the areas of eviction, child support actions, and certain other situation).

[muslgrl]

Originally Posted by Goldking

WELL, KAABI
Will you please clarify what is liquidation?

Yes i am not understanding either

[r8rpwr]

Melos explained it well:

Chapter 7 bankruptcy, which is total dismissal of all your debts (as opposed to Chapter 13 which is devising a reduced amount payment plan

[Avian]

I do remember hearing about this. Overall, it should be a good thing. Liquidation should only be for people who are really in trouble.

[Raquelita]

I am glad that mandatory credit counseling is a part of filing in many states now. What is an automatic stay though?