Filing for a Bankruptcy is one of the toughest decisions that a person has to take in a life time. The stigma of being bankrupt is always considered low in our society but often we are left with no other option than to file for a Bankruptcy. Several reasons can result in to Bankruptcy filing. These may include sudden loss of job, degrading health or accident, over expenses or divorce or other similar reasons. These directly or indirectly affect the income of the individual and that becomes the cause of his being bankrupt.
But if you run out of cash at some point of life and the creditors starts beating your doors for refunds, that doesn’t mean you simply go for the filing with the Bankruptcy court. Always consider Bankruptcy filing to be the last option. And if you are confused of your situation you can consult some Berkley Bankruptcy lawyer that can help you in understanding your financial condition and can recommend you the right way to get through the difficult times.
If your Berkley Bankruptcy lawyer has recommended you filing a petition with the Bankruptcy court then you can consider filing for Bankruptcy under Title 11 of United States federal laws. Broadly individual Bankruptcy is studied under two sections Chapter 7 Bankruptcy and Chapter 13 Bankruptcy. There are other Chapters as well like Chapter 9, Chapter 11 and Chapter 12 but they have their own implications that we won’t be discussing here. Before you could qualify for any of these Bankruptcy filings you have to clear the means test. This test usually checks your ability to file for Bankruptcy under federal American laws.
Chapter 7 Bankruptcy is the most common form of Bankruptcy in America. It is often referred to as the liquidation Bankruptcy. Under Chapter 7 Bankruptcy the debtor is allowed to clear of his debts by mortgaging his property. When a person files for Chapter 7 Bankruptcy the federal court appoints a trustee who collects all the information regarding the debtor’s property. And from all the available assets the exempt property is separated from the non exempt one. And the debtor can pay off the debts my mortgaging his non exempt property.
Chapter 13 Bankruptcy is completely opposite to it. Under Chapter 13 debtor is allowed to keep his non exempt property as well. The court sees the willingness of the debtor to pay off his debts and makes a repayment plan. A person with a certain level of income can apply for Chapter 13 Bankruptcy and that of course depends on the amount of total debts. If the person qualifies for the Chapter 13 Bankruptcy then he is allowed to pay off his debts in installments within a period of three to five years.
So when you are out of cash and the debtors are trying to harass you, you can call a Berkley Bankruptcy lawyer and discuss your financial condition with him. He will definitely help you find some way out and if you are to file for Bankruptcy then he can help you with that as well. So if you are looking for some Berkley Bankruptcy lawyer you can refer KorbLaw.com. For more details you can log on to: www.Korblaw.com
Michael Brown is a renowned article expert working for KorbLaw.com. For any help regarding Bankruptcy issues you need to contact an expert Berkley Bankruptcy lawyer. Berkley Bankruptcy advisors are well informed of all the pros and cons concerned with Berkley Bankruptcy laws.