1. BANKRUPTCY
INTRODUCTION

2. Individual Bankruptcies
Chapter 7 and Chapter 13
In a bankruptcy case under Chapter 7, you file a petition asking the court to discharge your debts. The basic idea in a Chapter 7 bankruptcy is to wipe out (discharge) your debts in exchange for giving up your property, except for exempt property which the law allows you to keep. In most cases, much or all of your property may be exempt. Property which is not exempt is sold and the money distributed to creditors.

3. CH. 13
Chapter 13 - In a Chapter 13 case, you file a plan showing how you will pay off some of your past-due and current debts over an extended period, normally three to five years. After you complete the plan, the unpaid balance on certain debts may be wiped out.
The most important thing about a Chapter 13 case is that it can allow you to keep valuable property (especially your home) which might otherwise be lost.
You should consider filing a Chapter 13 plan if you:
own your home and are in danger of losing it because of money problems;
are behind in debt payments, but can catch up on the most important debts if given some time; and
have regular income. (This can include government benefits such as social security or public assistance.)

4. Chapter 11 – Commercial Bankruptcy - reorganization
Chapter 11 Bankruptcy is usually pursued by commercial enterprises. Chapter 11 Bankruptcy is designed for companies that want to repay their debts while staying open for business. In a Chapter 11 Bankruptcy case, the business owner submits a plan of reorganization to the court. If the court approves your plan, management then continues to run everyday operations of the business, however, the bankruptcy court must approve all significant business decisions. Under Chapter 11, after a period of consolidation, the debtor typically emerges with a reduced debt load and a reorganized business.

5. The Automatic Stay Every Case Comes With An Automatic Stay
Federal Court Injunction Against Proceeding
The Stay Is In Force, Whether or Not Anyone Has Received Notice of The Bankruptcy
If someone goes ahead with actions against a debtor in violation of the stay, those acts are void or voidable

6. Don’t Violate the Stay
Deliberate Actions In Violation Of The Stay Expose The Actor to Damages
Damages Can Include Punitive Damages And Attorneys Fees

7. Stay in Ch. 13 Protects Co-debtors
If the lawsuit involves a consumer debt, anyone who is jointly liable with the debtor is protected
A consumer debt is defined as a debt incurred by an individual primarily for personal, family, or household purposes
The co-debtor stay may be lifted by a motion for relief from the stay if the Ch. 13 plan doesn’t propose to pay the debt in full

8. Other Defendants
The suit in nonbankruptcy court can generally continue against other parties
The debtor may be required to appear as a nonparty witness
Most courts hold that suits can continue against entities owned by the debtor

9. Multi-party actions including the debtor
You may not want to proceed with the debtor absent from the case
You can seek to remove the suit to bankruptcy court and try the claim there or
You can seek relief from the automatic stay

10. Dischargeability not an exception to the stay
You must respect the stay even though your claim may be ultimately nondischargeable
Some matters that are nondischargeable include criminal matters, family law for paternity and status, tax assessments

11. Discharge provides permanent injunction
Once discharge occurs you cannot pursue your claim unless your claim is not dischargeable