The Basics Of Filing Personal Bankruptcy
October 22, 2009 by admin
General Information about Ch. 7 and Ch. 13 Bankruptcy
Deciding to file for bankruptcy can be difficult. It can also be a fresh start toward a new
life. The type of bankruptcy that is best for you depends upon your individual situation.
To learn some of the basics about the different types of bankruptcy and how they work, please read on. To discuss filing bankruptcy with a bankruptcy attorney, please fill in the Free, No Obligation Evaluation Form. You will be contacted by a local bankruptcy attorney who will talk with you and help you evaluate the best course of action for your specific situation.
Just taking these first steps will help you feel better, and will help you take control of your financial future.
Chapter 7 Bankruptcy
Chapter 7 Bankruptcy is for individuals who:
- Can no longer pay their basic living expenses; and
- Do not have significant, or any, equity in any real property or personal property; and
- Wish to have creditors stop coming after them for money they do not have.
In Chapter 7 Bankruptcy, you are seeking to have the Bankruptcy Court order creditors to stop debt collecting and to dismiss your unsecured debts. Unsecured debts are debts that are not tied to any item of property. It is where the creditor has no right to take any property in place of payment for the debt. Clothing or dishes would be examples of unsecured debt.
Chapter 7 Bankruptcy will not dismiss all of your secured debts, such as a loan on a house where the loan payment is “secured” by the house itself. In Chapter 7 Bankruptcy, the house may be foreclosed upon and/or sold by the creditor to obtain payment for the loan.
Chapter 7 Bankruptcy is fairly simple and straightforward. It can be completed in as little as a few months. The amount of time depends upon the amount of assets involved and the court’s calendar and other circumstances.
Chapter 13 Bankruptcy
Chapter 13 Bankruptcy is for individuals who:
- Have significant equity in their home, or other properties, and do not want to lose them; and
- Are able to consistently pay for regular living expenses, but cannot consistently pay for additional debts they have taken on
In Chapter 13 Bankruptcy, a Bankruptcy Trustee will be assigned to work out a payment plan with you and your creditors allowing you to keep as many of your assets as possible. Generally, you will have three to five years to pay back all, or a portion of your past due accounts that you all agree upon. You pay the trustee, and the trustee pays your creditors so you no longer have to deal with them directly.
These are some of the basics of chapter 7 and chapter 13 bankruptcies. As you know, each person or families circumstances are going to be different. Your next step is to fill out the Free, No Obligation Evaluation Form. You will be contacted by a local bankruptcy attorney who will talk with you and help you evaluate the best course of action for your specific situation.
Comments
Feel free to leave a comment...
and oh, if you want a pic to show with your comment, go get a gravatar!