A Fresh Start Through Bankruptcy - Chapter 7
No one ever plans for it to happen, but sometimes things get out of hand and you end up with more debt than you can pay back. No one wants to think about going bankrupt, but sometimes there's nothing else you can do. With Chapter 7 bankruptcy, you can get out of a tough situation and start over. In Chapter 7, a debtor's assets are sold and the money is split among his creditors. If a debtor has no assets, it takes him less time to get a fresh start.
Most people who file for bankruptcy do so under Chapter 7. This is the most common type of bankruptcy filing, making up about 65% of all bankruptcy filings. As long as the debtor's creditors don't object, they can be debt-free in a few months.
If a debtor agrees to keep making payments, they won't lose their house or car. A lot of people don't know this, so they won't even look into Chapter 7 bankruptcy. The only problem with Chapter 7 is that you can't file for bankruptcy again until six years have passed since your last bankruptcy.
How do you file for bankruptcy under Chapter 7? The easiest way to find out is to talk to a bankruptcy lawyer. Forms need to be filled out and sent to the court system. You will be guided through this process by a lawyer. It is very important to tell the truth in every question.
No one ever thinks they might need to file for bankruptcy. It's nice to know that you have a choice if things get bad enough. It's also nice to know that you don't have to give up your house or car if you want to start over.
Chapter 13 bankruptcy is a way to ease the pain.
You have more and more debts to pay, and you are getting further and further behind. You want to pay them, but you don't know how to go about it. You can do this under Chapter 13 of the bankruptcy code. You can pay back your bills with less interest or with no interest at all. You can keep your property if you file for Chapter 13 bankruptcy. This kind of bankruptcy is for people who have a steady income and can pay to ask for a change. With Chapter 13, you have five years to pay back your debts. During these five years, you and the courts will both have an attorney watching over the process.
The debtor can keep their property if they file for Chapter 13 bankruptcy. The courts will set up a plan for them to pay back the money with no interest. A written plan will be made to protect both the debtor and the people he owes money to. Once this plan has been written and approved, the repayment process must start in thirty to forty-five days. A trustee doesn't have to be a part of the repayment plan, but they could be if they wanted to. By law, the creditors have to follow this plan, and they can't take any other money from the debtor. You and your lawyer will come up with a reasonable plan for you to pay back the money.
When all the payments for a Chapter 13 bankruptcy are made, the debtor can get a full discharge. This kind of bankruptcy plan also lets you make a plan for paying back your debts, even if the creditors don't agree with it. They can file an objection, but if the court has already approved it, they don't have many choices. This is probably the way to go if you want to pay off your debts, but at a slower rate. You get out of debt and keep everything you own.
