If you are in debt and feel like there is no way you will ever get out from under your bills then you may want to check into the different types of bankruptcy options available to you. We are all feeling the stress of financial obligations and the government just keeps making it harder for us to get back on our feet. Hopefully one of the following options will fit your situation and help you to overcome some of those obligations.
Chapter 7 basically will wipe out any unsecured debt. That means that anything you bought with your credit cards is subject to being sold and the proceeds from those sales would be given to your creditors. So if you don’t want to give up any of the assets you purchased then you might not want to file this type of bankruptcy. There is a provision that if you sign a reaffirmation agreement then you can keep some properties such as a car or your house.
Chapter 9 is exclusively for municipalities. It was developed to assist them in reorganizing their financial affairs and restructure their debts. It is similar to the other chapters except there are no provisions for liquidation of assets of the municipality and distribution of proceeds to creditors.
Chapter 11 is used by individuals, corporations and partnerships to reorganize debt. There is no limit to the amount of debt you can file for so it is more useful for corporations. It is expensive and not feasible for the average consumer. The success rate when using this method is ten percent or less.
To assist family farmers and family fishermen Chapter 12 was created. These two occupations would normally have an irregular income and thus may get behind on certain bills if they didn’t have a good season. This bankruptcy is designed with them in mind, it’s less complicated and not as expensive as Chapter 11. They can propose a payment plan for all or part of their debt and the courts will work with them to help them carry out that proposal.
The bankruptcy choice used by most people is Chapter 13. This is basically a plan for payment to your creditors at a lower rate and payment. The plans usually take three to five years to complete depending on your income and the amount of money you entered into the plan. If you owe too much money or don’t make enough to pay back within the given time then you will not be eligible to participate in this option.
Seems like each day more and more people are getting farther and farther into debt, knowing the different types of bankruptcy option available for you could be the answer to your problems. There are several law firms that offer free consultation if you are really interested in checking out these options.
Enrique Castillano also writes about Attorneys and Legal Matters on Spanish Language websites including Abogados and Abogados Gratis
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- Chapter 7 Bankruptcy
- Santa Cruz Bankruptcy Advocate At Your Assistance
- Chapter 13 Bankruptcy
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Tags: Bankruptcy, credit, finance