Do both spouses have to file for bankruptcy?

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Married couples can file together in a joint bankruptcy that combines both spouses’ debts and property into the same case. The overall goal is to discharge your debt and keep more of your property. In most cases, filing together will allow you to accomplish this.

When only one spouse files, the spouse who does not file becomes responsible for their own debts as well as any joint debts. To the contrary, if a spouse has a lot of individual debts that are not shared, filing alone may be more beneficial.

After review of your property both individual and joint, your attorney will be able to determine the most effective way for you to file. By filing a joint bankruptcy, you can save money on court and attorney fees because it usually costs the same as filing one case.

Michael A. Cibik, Esquire

Michael A. Cibik is a partner at the Philadelphia law firm of Cibik & Cataldo, P.C. He is one of the few bankruptcy attorneys in the Philadelphia area certified by the American Bankruptcy Board.

If you or someone you know is having financial problems, stop worrying and call Michael at (215) 735-1060 for a free consultation.

The post Do both spouses have to file for bankruptcy? appeared first on Philadelphia Bankruptcy Lawyers.

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Cibik & Cataldo
1500 Walnut St Suite 900
Philadelphia, PA 19102
(215) 735-1060
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Can I give a creditor preference in a bankruptcy?

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In bankruptcy, the priority that creditors receive is determined by the type of debt. The first party to be paid is the United States Bankruptcy court who charges fees for filing. Next to be paid is secured creditors, or creditors who hold a lien on property that is in possession of the debtor. Examples of this would are mortgages on homes and unpaid balances on cars.

After that, unsecured creditors are paid. There is no property involved that these creditors may repossess. Of unsecured debts, the first of these debts to be paid is domestic support, which includes alimony and child support, certain tax obligations, and injury or death caused by an intoxicated motor vehicle accident. Other examples of unsecured debts include credit card debt, medical bills, and personal loans. Student loans are also considered unsecured debts, however, they cannot be discharged unless you can prove that it would be an undue hardship to pay them – which is extremely difficult to prove.

Following that, the next group of creditors to be paid are the costs of administration in the bankruptcy case, including the trustee’s fees, clerk’s fees, and the attorney’s fees. It is important to note that creditors do not get paid automatically. They must submit a proof of claim to the court in which they indicate a claim’s priority status. The trustee or the court-appointed individual who oversees the case reviews all of the submitted claims and will distribute the funds to the creditors by priority. If money remains after that, the trustee will then pay claims that do not have priority.

The post Can I give a creditor preference in a bankruptcy? appeared first on Philadelphia Bankruptcy Lawyers.

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Cibik & Cataldo
1500 Walnut St Suite 900
Philadelphia, PA 19102
(215) 735-1060
https://ift.tt/2J37Vuo

What is a Chapter 11(v) Bankruptcy?

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In the new year, businesses in debt will have new options to help keep the doors open and get debt relief. Last month, President Trump signed a bi-partisan bill into law that amends Chapter 11 of the bankruptcy code to allow businesses with less than $2.7 million in debt to file a special reorganization plan, which will be known as a Chapter 11(V). Until now, a business’s only option was to file either a regular Chapter 11, which can be costly, or file a more affordable Chapter 7, which requires them to close up shop.

A Chapter 11(V) is a more affordable solution because the bankruptcy estate is administered by a standing trustee, similar to a consumer Chapter 13 case. Additionally, there is no creditors’ committee, which makes the case less complex. The new law takes effect in February 2020.

Michael A. Cibik, Esquire

Michael A. Cibik is a partner at the Philadelphia law firm of Cibik & Cataldo, P.C. He is one of the few bankruptcy attorneys in the Philadelphia area certified by the American Bankruptcy Board.

If you or someone you know is having financial problems, stop worrying and call Michael at (215) 735-1060 for a free consultation.

The post What is a Chapter 11(v) Bankruptcy? appeared first on Philadelphia Bankruptcy Lawyers.

from Philadelphia Bankruptcy Lawyers https://ift.tt/2Iz9uQ4
Cibik & Cataldo
1500 Walnut St Suite 900
Philadelphia, PA 19102
(215) 735-1060
https://ift.tt/2J37Vuo