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Creditors will receive notice of a Chapter 7 bankruptcy through Form 309A or Form 309B for individuals (Form 309C or Form 309D for corporations or partnerships), depending on whether a proof of claim deadline has been set in the case. Form 309I is used to notify creditors of a Chapter 13 bankruptcy.
If you receive this notice, it means one of three things: The address you provided for the creditor in your bankruptcy paperwork was incorrect, The court sent you notice of your own bankruptcy via this form, or. Someone who owes you money filed bankruptcy.
Chapter 7 for Corporations and LLCs: How It Works The goal is orderly business liquidation. Not only will filing Chapter 7 close the business, but corporations and LLCs don't receive a debt discharge. It isn't needed. A creditor can't collect from the company once it's no longer operational.
Official Form 309F (For Corporations or Partnerships) Notice of Chapter 11 Bankruptcy Case.
The Chapter 7 Discharge. A discharge releases individual debtors from personal liability for most debts and prevents the creditors owed those debts from taking any collection actions against the debtor.
A Chapter 7 bankruptcy wipes out mortgages, car loans, and other secured debts. But if you don't continue to pay as agreed, the lender will take back the home, car, or other collateralized property using the lender's lien rights.
In a Nutshell The court sends this document to the creditors you listed on your bankruptcy paperwork when you file. It gives each creditor important information about your case and tells them what they need to do if they have a reasonable objection to your bankruptcy.
Bankruptcy helps people who can no longer pay their debts get a fresh start by liquidating assets to pay their debts or by creating a repayment plan. Bankruptcy laws also protect financially troubled businesses. This section explains the bankruptcy process and laws.