Bankruptcy is a critical financial situation where your debts have surpassed all the limits and there’s no way out to get out of those gruesome and heavy debts. Most of the individuals who go bankrupt go for the bankruptcy advice to know what alternatives they have before them in order to get out of the critical situation. Another fact to consider out here is that most of the bankrupt individuals file under chapter 7 or chapter 13 bankruptcy. Let’s take a quick view of both these bankruptcy chapters.
Chapter 7 bankruptcy information – It is liquidation or straight bankruptcy and the individual who is opting for this bankruptcy has to go through bankruptcy Means Test. Bankruptcy Means Test will point out the eligibility criteria for gaining relief under the bankruptcy. With the help of Chapter 7 bankruptcy you can discharge various debts running on your head, and these include personal loans, credit cards, dentist bills etc. But, you need to make sure in your mind that this type of bankruptcy doesn’t get you off from all types of debts. There are certain debts which you can discharge under chapter 7 bankruptcy. Another negative impact for this type of bankruptcy is that you have to sell off your property assets to pay the creditors.
Chapter 13 bankruptcy rules – In case you do not quality chapter 7 bankruptcy Means Test, you apply for chapter 13 bankruptcy. Chapter 13 bankruptcy provides repayment and restructuring of the debts so that the bankrupt individuals can pay to the creditor at their own will. This is a kind of loan consolidation but it has certain protocols to adhere. Here the individual has to show proof of his/her income at least 2-Months before filing. You also have to provide information about your assets and liabilities. Check out in detail with the bankruptcy lawyer.
Do you know about the services offered by a Bankruptcy Attorney? The attorney is aware about all types of bankruptcy chapters. The attorney can file your bankruptcy application in the right manners so that your chances of getting the benefits increase. Further, the attorney will also act as your mentor all through the process of bankruptcy.
Bankruptcy process is an elaborate process and if you want to carry out the bankruptcy smoothly, you ought to have complete understanding of the process.
Bankruptcy process is an elaborate process and for which reason you should have complete understanding of all aspects of bankruptcy. If you are half informed or not informed, you will be in trouble.
John Smith writes on bankruptcy, and provides reliable information on how to look for the Filing Bankruptcy Online and how to start the Chapter 7 Bankruptcy laws. The author is knowledgeable about bankruptcy and the processes involved under it.