In Deep But I Still Know Nothing About Bankruptcy - new
Pushing Further Into Outstanding Debt, Without Knowing the Basics of Filing for Bankruptcy
People have a list of choices regarding methods to file for bankruptcy. Each chapter of filing for bankruptcy depends on the individual’s financial situation. Read below to become familiar with some of the basics in filing for bankruptcy. Make sure to take any further questions to your bankruptcy attorney for clarification.
The following material will help you choose which bankruptcy to file for:
Chapter 13 Bankruptcy
Chapter 13 Bankruptcy is often referred to as a wage-earner bankruptcy. This bankruptcy allows the person in debt to appear before the court and determine how much of one’s income per month will be allotted to paying off the outstanding debts. Individuals filing for Chapter 13 Bankruptcy will be allowed to keep most personal assets in the process of reconstructing payment plans. The court will approve your final repayment plan based on your income. Then, the court will appoint a trustee to keep track of the payments you make. This government personnel retrieves your monthly payments and proceeds to pay down your outstanding debt with the amount you pay, per month. Most trustees charge quite a hefty fee for these financial services.
Individuals filing for Chapter 13 Bankruptcy must meet some preliminary requirements, such as not having over 250,000 dollars in outstanding, liquidated, unsecured debts and not having over 750,000 dollars in liquidated, secured debts. Make sure to ask your attorney if you are qualified to file for this bankruptcy. Bankruptcies dismissed within 180 days of filing cannot file a second petition within a given amount of time.
Chapter 7 Bankruptcy
This bankruptcy refers to what is known as a straightforward bankruptcy. Most individuals in debt turn to this form of bankruptcy because it dismisses or cancels almost all outstanding debt accounts. This type of bankruptcy calls for the court to appoint a trustee in the process of repossess most of the individual’s personal assets. These assets will be sold in an auction and the proceeds will go towards paying off outstanding debt accounts. Certain states allow some cases to retain a specific amount of personal assets or properties. Again, make sure to ask your attorney if you are qualified to file for this type of bankruptcy. This bankruptcy includes a clause prohibiting the consumer from filing a second petition within 180 days of the first bankruptcy’s dismissal.
Being denied a Chapter 7 Bankruptcy discharge bars the individual from filing a second claim within 6 years of the initial filing. Make sure to clear your qualifications for filing bankruptcy before proceeding. The court offers exceptions for certain cases.
Chapter 12 Bankruptcy
This method of filing for bankruptcy allows family farmers to file for the same type of bankruptcy methods discussed in Chapter 13 Bankruptcy.
Chapter 11 Bankruptcy
This method of filing for bankruptcy allows business organizations to file for suits similar to Chapter 7 Bankruptcy but does not pertain to individuals.
Tags: bankruptcy options, chapter 11, chapter 12, chapter 13, chapter 7, personal bankruptcy advice