The term medical bankruptcy is not new to the modern society as many people have already used it at one point of their lives. For those individuals who have incurred medical bills that are improbable to be paid immediately, the first thing that one will do is to look for the quickest way out of this tight situation.
In case you are currently having this kind of problem, most probably, you are also thinking of how the medical bankruptcy can help you. But before you will pursue in taking advantage of this scheme, there are things that you should know about it. The following are given below so you will understand it clearly.
Federal Rules in Bankruptcy Procedures
The rules in the Federal Bankruptcy Procedures have been published at the Cornell school of Law by the Legal Information Institute. These rules are governing the procedures for every filing of bankruptcy that one must comprehend and follow. It includes the following: Chapter 7, Chapter 13 and Chapter 11.
Rules' Contents
The Federal Rules for the Bankruptcy Procedures is composed of nine parts, and each of these has their respective set of rules. Each rule is numbered consecutively and has the part of the number appended in each beginning of the rule number.
Bankruptcy Commencement Cases
The first part of the bankruptcy rules is dictating how a particular case will be reopened which also include the involuntary as well as the voluntary petitions. Each of these petitions is required to be filed by the bankruptcy clerk then will be passed to the selected bankruptcy trustee. This particular rule also states the information that must be included in any kind of petition and also to the filing fee for the Chapter 11 bankruptcy filings. As stated by the court of federal bankruptcy, the filing can be changed from time to time.
Meetings, Notices and the Administration
The second part of the rules that is stated in the bankruptcy filings is dictating how to handle the notices that are given to the creditors as well as the other administrative actions that will take place during oneís insolvency. Also covered by the rule 2 is the examination for the debtor, apprehension and the exclusion of a particular debtor to force his attendance for the said examination.
Distributions and Claims
The 3rd part is intended to be followed by the creditors. This includes the proof of claim filings and the proof of the interest of equity filings. Both trustee and the debtor are allowed to do the claim filings also. This rule also governs the different oppositions to claims as well as the reconsideration that claims can have. But the most important part of the part 3 of the rules is the payments of the dividends that will take place in every liquidation procedure.
Debtors Benefits and his Duties
One should not forget that in every time he will file his insolvency case, he has the duties to fulfill and benefits to gain after. The automatic stay is one of the immediate benefits he can get from this procedure. This will dictate any creditors that are included in the list to refrain from getting collections against the will of the debtors. However, debtors should also be responsible to fulfill his obligation.
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