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WELCOME: You are about to embark on the unknown. Bankruptcy. However, we know your fears, and we will address them. Below are two short videos the first explains the basics of bankruptcy this should answer most of your questions. The second explains the different types of bankruptcy. Sit back enjoy the video it will put your mind at rest. In addition, look to the left, the menu bar has buttons that are more educational
341 meeting and discharge. We asked our clients what they wanted in a website, they told us, and we listened. Therefore, in the site you will find short pages and helpful videos along the way. If you follow the process, you would not miss a thing. However, if you know where you are going to you can always navigate there via the menus
341 meeting and discharge. We asked our clients what they wanted in a website, they told us, and we listened. Therefore, in the site you will find short pages and helpful videos along the way. If you follow the process, you would not miss a thing. However, if you know where you are going to you can always navigate there via the menus
As you consider your options in your decision to file a personal bankruptcy, you need to be aware of the different types of bankruptcy available for you. Bankruptcy processing takes a lot of effort and consumes much energy, apart from being highly stressful. The decision to file personal bankruptcy is not an ordinary one, but one with profound implications on the person who claims bankruptcy protection. The first step towards doing an effective job in dealing with a tough situation in life is to have a complete idea of what it is that you are dealing with, in all the realities and the complexities involved.
There are basically three types of bankruptcy protections available – Chapter 7, Chapter 11 and Chapter 13. Chapter 11 bankruptcy applies specifically to large organizations that have accumulated a lot of debt, much more than what they could service. However, when it comes to the issue of filing for personal bankruptcy, there are two types Chapter 7 bankruptcy and Chapter 13 bankruptcy.
Chapter 7 Bankruptcy: Chapter 7 bankruptcy is the more severe of the two types of bankruptcy, which could be filed by both individuals as well as companies. When you file personal bankruptcy under chapter 7, most of your unsecured debts are likely to get terminated after your secured debts have been paid off. Of course, the law would provide for exemptions that can be used. You would typically have two types of assets – the liquid assets are the ones that can easily be converted into cash, such as your bank savings accounts or your checking account. Under Chapter 7, your liquid assets are to be submitted to the courts that deal with litigation, when you file personal bankruptcy. Typically, the liquid assets are treated as non-exempt assets, ones that cannot be exempted from liquidating in debt repayments. One of the criteria that you need when considering the types of bankruptcy is to see which assets are exempted from liquidation as has been provided in your state. Under the provisions of Chapter 7 bankruptcy, assets that are exempted by law from being liquidated for repayments of debts are considered to be discharged. Once the assets are discharged, creditors cannot claim their rights over these assets.
As a candidate for filing bankruptcy under the provisions of Chapter 7 bankruptcy, you would have to qualify under a means test which would testify that your gross income is not as much as the median income of families of a similar size as yours, in your own state. Further, you are also suppose to have consulted a qualified credit counseling agency, if you hope to qualify for Chapter 7 bankruptcy. In case you are not able to establish that you qualify for Chapter 7 bankruptcy, you could opt for the second among the two types of bankruptcy, among the personal bankruptcy options, which is Chapter 13 bankruptcy.
Chapter 13 bankruptcy: Both small business owners as well as regular wage earning people, who find it tough to service their mounting debts, could file for the second of the two types of bankruptcy protection, in the personal bankruptcy category. The main feature of this type of bankruptcy is that payments are scheduled to be spread over a few years of repayment. The idea behind the provision to file personal bankruptcy under Chapter 13 is that of delayed payments over a period of time, along with a reduction in the amount payable to creditors. Chapter 13 bankruptcy filing is generally preferred over Chapter 7 bankruptcy as a means of reestablishing the credit worthiness of the debtors who have been subject to financial hardships.
Of the two types of bankruptcy, Chapter 13bankruptcy is what would provide you a time frame within which you would be supposed to repay your debt obligations. Typically, the Chapter 13 bankruptcy would provide you with a 3 – 5 year time frame within which your debt repayments would have to be scheduled. You would be expected to formulate a formal debt repayment schedule and plan that you would adhere to, even as you approach the court to file personal bankruptcy. And your payments are supposed to be made to the court, which would in turn make the payment to your creditors. Your approved payments plan would be the final, and you would not be liable for any further payments, after all the debt that remains gets discharged.
There are basically three types of bankruptcy protections available – Chapter 7, Chapter 11 and Chapter 13. Chapter 11 bankruptcy applies specifically to large organizations that have accumulated a lot of debt, much more than what they could service. However, when it comes to the issue of filing for personal bankruptcy, there are two types Chapter 7 bankruptcy and Chapter 13 bankruptcy.
Chapter 7 Bankruptcy: Chapter 7 bankruptcy is the more severe of the two types of bankruptcy, which could be filed by both individuals as well as companies. When you file personal bankruptcy under chapter 7, most of your unsecured debts are likely to get terminated after your secured debts have been paid off. Of course, the law would provide for exemptions that can be used. You would typically have two types of assets – the liquid assets are the ones that can easily be converted into cash, such as your bank savings accounts or your checking account. Under Chapter 7, your liquid assets are to be submitted to the courts that deal with litigation, when you file personal bankruptcy. Typically, the liquid assets are treated as non-exempt assets, ones that cannot be exempted from liquidating in debt repayments. One of the criteria that you need when considering the types of bankruptcy is to see which assets are exempted from liquidation as has been provided in your state. Under the provisions of Chapter 7 bankruptcy, assets that are exempted by law from being liquidated for repayments of debts are considered to be discharged. Once the assets are discharged, creditors cannot claim their rights over these assets.
As a candidate for filing bankruptcy under the provisions of Chapter 7 bankruptcy, you would have to qualify under a means test which would testify that your gross income is not as much as the median income of families of a similar size as yours, in your own state. Further, you are also suppose to have consulted a qualified credit counseling agency, if you hope to qualify for Chapter 7 bankruptcy. In case you are not able to establish that you qualify for Chapter 7 bankruptcy, you could opt for the second among the two types of bankruptcy, among the personal bankruptcy options, which is Chapter 13 bankruptcy.
Chapter 13 bankruptcy: Both small business owners as well as regular wage earning people, who find it tough to service their mounting debts, could file for the second of the two types of bankruptcy protection, in the personal bankruptcy category. The main feature of this type of bankruptcy is that payments are scheduled to be spread over a few years of repayment. The idea behind the provision to file personal bankruptcy under Chapter 13 is that of delayed payments over a period of time, along with a reduction in the amount payable to creditors. Chapter 13 bankruptcy filing is generally preferred over Chapter 7 bankruptcy as a means of reestablishing the credit worthiness of the debtors who have been subject to financial hardships.
Of the two types of bankruptcy, Chapter 13bankruptcy is what would provide you a time frame within which you would be supposed to repay your debt obligations. Typically, the Chapter 13 bankruptcy would provide you with a 3 – 5 year time frame within which your debt repayments would have to be scheduled. You would be expected to formulate a formal debt repayment schedule and plan that you would adhere to, even as you approach the court to file personal bankruptcy. And your payments are supposed to be made to the court, which would in turn make the payment to your creditors. Your approved payments plan would be the final, and you would not be liable for any further payments, after all the debt that remains gets discharged.
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