A Chapter 7 bankruptcy is also referred to as a no-asset bankruptcy. Usually, the petitioner has no assets to repay the debt and any assets available are sold and divided by the
Trustee.
What Should I do after I receive a Chapter 7 notice?
Cease all collection efforts on the account.
Review the notice for the schedule of creditors.
If a sale of assets notice is received, file a proof of claim to the appropriate bankruptcy court.
Review final notice of bankruptcy for final discharge of the debt.
Chapter 13
A Chapter 13 bankruptcy allows individuals
to repay their debts and avoid Chapter 7 by
making periodic payments to a trustee over a
period of 3-5 years. After completion of the
plan, the remained of debts still owed are
discharged. Historically, creditors can expect
15-40% of the debt repaid before the full debt
is discharged.
What should I do after I receive a Chapter 13 notice?
Cease all collection efforts on the account.
File a proof of claim with the appropriate parties
Schedule of creditors and repayment schedules are received by the creditor. Document the repayment schedule and wait for payments, if any, form the trustee on the case.
Chapter 11
A Chapter 11 Bankruptcy allows companies an “automatic stay” to protect itself from creditors. It permits a business to continue day to day operations while allowing the company
to prepare a reorganization plan to pay outstanding creditors.
What should I do after I receive a Chapter 11 notice?
Cease all collection efforts on the account.
File a proof of claim with the appropriate parties
Court approved plan is voted on by the creditors.
Wisconsin Section 128 Debt Amortization
A Section 128 is not a bankruptcy. It is a Wisconsin statue that provides an “automatic stay” from creditors like a bankruptcy. The petitioner is obligated to repay 100% of the
debt within a 1–3-year period.
What should I do after I receive a Section 128 notice?
Cease all collection efforts on the account.
Contact trustee to include all amounts owed to
the creditor. A proof of claim form may not be
needed to file; however, creditors may be asked
to fill out a claim form to verify a outstanding
balance.
Schedule of creditors and repayment schedules are received by the creditor.
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