There are five different types of bankruptcy. Chapter 7 - Is for a person, company or corporation and will discharge the filing in exchange for giving up assets. It is for people who cannot afford to pay back their debts. People who file Chapter 7 are able to keep some of their assets. What people are entitled to keep can vary by state. Chapter 9 - Is pertinent to cities filing for bankruptcy. Chapter 11 - Is a reorganization for corporations or individuals with debt over approximately $336,900.00 in unsecured debts (no collateral) and secured debts (with collateral) over approximately $1,010,650.00. Chapter 12 - Pertains to farmers. Chapter 13 - Is the most common filing amongst consumers. This Chapter is for people who can make payments, but not up to consumer requirements. Chapter 13 helps the consumer retain their assets as opposed to Chapter 7. This chapter can stop foreclosures and repossessions, and provide a payment plan within a certain time frame. Develop a scenario in which you are the office manager/accountant. After carefully going over all the financial records for the office, you come to the conclusion that the physician you work for must file for bankruptcy. List the benefits, assets and liabilities, and propose a chapter filing that would better suit the physician, the medical office and employees. Be specific.
Posted on: Thu, 26 Sep 2013 01:18:06 +0000
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