Businesses and individuals are able to eliminate or repay their debts under the supervision and protection of a court under a process called bankruptcy. They get a chance to reorganize their financial status afresh after clearing with their creditors. There are many types of liquidation and reorganization that can be applied for but two of them are most common; chapter 7 and chapter 13.
There are two types of bankruptcy that can be applied for which are chapter 7 and chapter 13. Chapter 7 is commonly used when you have little property except for the basic assets like furniture and clothing, have little money or no money left after meeting basic expenses and when you cannot afford to meet them. The processing of chapter 7 moves quickly and most unsecured debts can be completely eliminated.
This liquidation is the most common form of bankruptcy filing since it is a faster method of reorganizing financially. It is even faster especially when there are no objections fro the parties involved in the filing. Most of the debts are always dealt with in this method soon after successful filing by an attorney. The advantage of this method is that a debtor can continue paying for a mortgage after signing a reaffirmation agreement.
The clear advantage of an individual declaring himself bankrupt is the new chance of reorganizing himself financially. If lucky, you can maintain some of your valuable assets but this depends on the mechanisms used by the creditors to demand their settlement . It is always common that you will retain basic house equipments such as cooking equipments and a collection of furniture like the bed.
The minimum amount of money that you will be required to pay monthly under chapter 13 is calculated depending on; the monthly income you earn, the total amount of the debt and how much the creditors would have earned if you had opted for chapter 7. The debt limits set by the federal government for eligibility in this structure must be adhered to.
Bankruptcy should always be the last option after trying other methods of clearing your debts due to the implication associated with it. Methods that can be approached in avoiding filing this plan may include negotiating a debt deduction program with your creditors, adopting a debt consolidation program or seeking the services of a debt management firm.
The implications of liquidation are many, and they include the loss of some or all of your assets. People who are declared bankrupt mostly loose their credit cards and their public image is sometimes tainted by publishing. You cannot practice is some professional jobs such as chartered accountant or be a director of a company. Individuals are sometimes not allowed to trade using other names unless they send notifications to the other concerned parties.
Before deciding on which type of bankruptcy to apply, it is important to consult an attorney in order to select a type that perfectly suits your situation. An individual can start rebuilding his financial future after an elapse of the period stipulated by the order by observing positive credit behaviors. Bankruptcy should always be the final option after all others are exhausted.
There are two types of bankruptcy that can be applied for which are chapter 7 and chapter 13. Chapter 7 is commonly used when you have little property except for the basic assets like furniture and clothing, have little money or no money left after meeting basic expenses and when you cannot afford to meet them. The processing of chapter 7 moves quickly and most unsecured debts can be completely eliminated.
This liquidation is the most common form of bankruptcy filing since it is a faster method of reorganizing financially. It is even faster especially when there are no objections fro the parties involved in the filing. Most of the debts are always dealt with in this method soon after successful filing by an attorney. The advantage of this method is that a debtor can continue paying for a mortgage after signing a reaffirmation agreement.
The clear advantage of an individual declaring himself bankrupt is the new chance of reorganizing himself financially. If lucky, you can maintain some of your valuable assets but this depends on the mechanisms used by the creditors to demand their settlement . It is always common that you will retain basic house equipments such as cooking equipments and a collection of furniture like the bed.
The minimum amount of money that you will be required to pay monthly under chapter 13 is calculated depending on; the monthly income you earn, the total amount of the debt and how much the creditors would have earned if you had opted for chapter 7. The debt limits set by the federal government for eligibility in this structure must be adhered to.
Bankruptcy should always be the last option after trying other methods of clearing your debts due to the implication associated with it. Methods that can be approached in avoiding filing this plan may include negotiating a debt deduction program with your creditors, adopting a debt consolidation program or seeking the services of a debt management firm.
The implications of liquidation are many, and they include the loss of some or all of your assets. People who are declared bankrupt mostly loose their credit cards and their public image is sometimes tainted by publishing. You cannot practice is some professional jobs such as chartered accountant or be a director of a company. Individuals are sometimes not allowed to trade using other names unless they send notifications to the other concerned parties.
Before deciding on which type of bankruptcy to apply, it is important to consult an attorney in order to select a type that perfectly suits your situation. An individual can start rebuilding his financial future after an elapse of the period stipulated by the order by observing positive credit behaviors. Bankruptcy should always be the final option after all others are exhausted.
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