There are several types of bankruptcy to explore. When a person is forced into filing for bankruptcy, they quite often feel overwhelmed. With an unstable economy, we are finding an increasing number of people in debt. There are many different kinds of situations you can find yourself in. For each financial bind you encounter, there will an appropriate Chapter of bankruptcy under which you would be wise to file under. As you explore your financial situation, the appropriate path through this process will become clear and obvious.
Phoenix Bankruptcy Lawyer, Jacksonville Bankruptcy Lawyer, Bankruptcy Records,
As you begin to explore your options you will find a total of four separate kinds of bankruptcy under which you may or may not qualify. Whether you qualify or not will be relevant to your personal debt. You must make an intelligent decision as to what path is the appropriate one for you to take.
The most common Chapter under which individuals file is called Chapter 7. Generally, individuals file under this type, but some corporations are also eligible to file under this type as well. Chapter 7 is known as a type of "liquidation bankruptcy." This means that items deemed non-exempt will be sold. The purpose of this is to attempt to pay back as much of the individuals debt as possible. After this liquidation, and unpaid debt will be discharged.
Next we have Chapter 11. This is usually reserved for business and partnerships, but some people may be able to file under this type also. Under chapter 11, the assets under the possession of the debtor are allowed to be kept. Also, all business-related practices are to be functioning as normal. The goal of this type of Chapter is for the debtor to form a goal of paying back the creditor. This type can become very complex, perhaps the most complex of all of the types.
The third type of bankruptcy is Chapter 12. With Chapter 12, a very specific type of bankruptcy, only farmers are eligible. They will keep their farms and assets. As mentioned above, a plan is put into place to ensure that the debt is paid accordingly.
The final method of bankruptcy is Chapter 13. Chapter 13 is somewhat akin to Chapter 11. But with this type, the focus is on the individuals. The debtor is allowed to retain assets. A plan to pay the debt is discussed, and usually entails a plan ranging anywhere from three years to five years. Although there is a possibility that much of this debt can be discharged, only the individual situation will determined whether this is a possibility.
Although on the surface filing for bankruptcy seems complicated and daunting, further exploration will reveal that your options are fairly obvious. It is advisable that you speak with an attorney and discuss your options. It is a very unfortunate situation to find yourself in debt, but before filing for bankruptcy, you must consider it your last option, as the impact of it will be with your for many years. If bankruptcy is your only option, weigh your choices carefully and make an intelligent decision.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Chapter 7 Bankruptcy
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment