| Bankruptcy and Liabilities Arising in a Marriage or Family Relationship |
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| The status of marriage creates duties and obligations between spouses that may be different from, and in addition to, those they consciously agree to assume. The bankruptcy of one spouse alone can sometimes affect the other spouse because of obligations arising out of the marriage relationship. More... |
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| Alimony and Support Claims |
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| Filing for bankruptcy does not suspend or stop the obligation to pay child support or alimony. Whether an obligation imposed by a divorce decree is dischargeable depends on whether it is characterized as support or as a property settlement. In many instances, obligations for property settlement can be discharged in bankruptcy, while obligations for child support and alimony cannot be discharged in bankruptcy. Bankruptcy law, not state law, determines whether an obligation is a support obligation or a property settlement obligation.More... |
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| Chapter 12 Plans |
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| A debtor is required to file a Chapter 12 plan within 90 days of the petition date, unless an extension is granted by the court. Once the plan is filed, the court is required to hold a hearing on confirmation within 45 days. However, in practice, the date for filing a plan is often extended. Plans range from three to five years. Creditors are to have at least 20 days notice prior to the confirmation hearing. A unique feature of the Chapter 12 plan is that plan payments are often due seasonally as the debtor receives income, such as after the harvesting of crops. More... |
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| Overview of Chapter 12 "Family Farmer" Bankruptcy |
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| In the mid-1980s, farmers throughout the United States faced seemingly insurmountable credit problems. Struggling family farmers were seeing their property and equipment placed on the auction block. In order to protect distressed family farms, Congress added Chapter 12 to the Bankruptcy Code in 1986. In 2003, about 700 family farmers sought the protection offered by a Chapter 12 bankruptcy. More... |
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| How Often Can a Debtor File for Bankruptcy? |
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| Some individuals, companies, or businesses consider filing for bankruptcy, usually as a last resort, when they are unable to pay their debts. About 1.5 million Americans filed for bankruptcy in 2002. That same year, nearly 40,000 businesses in the United States sought the protection of the bankruptcy laws in 2002. More... |
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