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Personal Bankruptcy
Personal Bankruptcy: Know Whether To Choose Chapter Seven Or Chapter Thirteen
Bankruptcy laws in the United States are made to ensure the interests of the borrower are safeguarded, and are formed by the federal government and addressed accordingly by various US Courts, and it is believed that each year as many as one million Americans go bankrupt and are found filing for bankruptcy. Most of these individuals that file for do so under different personal laws that include chapter thirteen and also chapter 7, and in a few instances, they can even qualify for chapter twelve, especially if they are anglers or farmers and business is owned by the family.
Filing Under Chapter Seven
You can file personal and at the same time do so under chapter seven in which case it is necessary for you to provide a list of all your assets to the court and also have to assign a trustee who will liquidate items in order to pay off creditors. Furthermore, filing personal is allowed once in seven years and the cost of filing personal is approximately three hundred dollars which goes towards filing fee.
If you plan on filing personal under chapter thirteen,
Bankruptcy Chapter 12
This chapter offers farmers, fishermen and family owned businesses relief from creditors.
Bankruptcy Chapter 11
Chapter 11 bankruptcy is for corporations and partnerships and some individuals to help them reorganize their debts.
Debt Consolidation vs Bankruptcy
File bankruptcy? Chapter 7? Chapter 13? Article offers a comparison between filing and debt consolidation and advantages and disadvantages of each.
Bankruptcy - Chapter 7 And Chapter 13
Information on chapter 7 and chapter 13 bankrukptcy and the pros and cons of each.
Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
Summary of the Bankruptcy Revision Act of 2005 and how it may impact filers.
Bankruptcy Terms
Glossary of bankruptcy terms and definitions related to chapter 7, chapter 11, chapter 12 and chapter 13.
it will help in reducing your debt though unlike chapter seven, does not cancel out your debt. And, chapter thirteen personal bankruptcies also means having to set out a plan for repayment with creditors and courts and assigning trustee who will make monthly payments after paying them the money. The trustee will receive payments from you and apportion them to various creditors, and an advantage to using chapter thirteen for filing personal is that unlike in chapter seven, under this chapter you may hold on to everything that would have been lost under chapter seven.
However, both these types of personal allows the debtor to rid him or herself of debts, though remember when filing chapter thirteen bankruptcy, you need to have debt that is not more than two hundred fifty thousand dollars and that such debt is unsecured, while debts that are secured should not exceed seven hundred and fifty thousand dollars.
The bottom line is that before filing for personal bankruptcy, makes sure to know what the ramifications of different chapters are and in most instances it may be better to file for chapter thirteen instead of chapter seven as the latter shows that you are a person that does not pay your debts.
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