Bankruptcy Newsletters

Chapter 13 Eligibility

Only individuals may file for Chapter 13 bankruptcy. Corporations and partnerships may not file for Chapter 13 bankruptcy. Any individual, even if self-employed or operating an unincorporated business, is eligible for Chapter 13 relief as long as that individual has regular income greater than reasonable living expenses, has unsecured debts not exceeding a certain sum, and has secured debts not exceeding a certain sum.

First Meeting of Creditors

Under the Bankruptcy Code, the United States trustee must convene and preside at a meeting of creditors, which is often referred to as the section 341 meeting. This must occur within a reasonable time after the order for relief in a case.

Reconsideration of Claims

The Federal Rules of Bankruptcy Procedure provide that a party in interest may move for reconsideration of an order allowing or disallowing a claim against the estate and that the court after a hearing on notice should enter an appropriate order. The reconsideration of a claim cannot upset proper distributions already made to holders of other allowed claims.

Turnover to the Trustee

The Bankruptcy Code requires an entity in possession, custody, or control of property of the estate, including exempt property, to deliver that property to the trustee, unless the property is of inconsequential value to the estate.

Use, Sale, or Lease of Property

The Bankruptcy Code governs the use, sale, or lease of property in bankruptcy. The trustee may use, sell, or lease the property of the estate other than in the ordinary course of business only after notice and a hearing. If the business of the debtor is authorized to be operated under Chapter 7, Chapter 11, Chapter 12, or Chapter 13, the trustee or debtor-in-possession may, without notice or hearing, use, sell, or lease property of the estate in the ordinary course of business.