Depending on your circumstances, as an individual debtor you may have the option of registering under Chapter 7 or Chapter 13. The purpose of Chapter 7 is to liquidate assets that are not protected by the law and use the proceeds to pay your creditors. This type of bankruptcy is frequently referred to as """"straight"", """"regular"", or liquidation, and it discharges all unsecured debts without the need for a repayment plan. Typically, a trustee sells the assets and divides the proceeds among the creditors. Secured loans are collateralized by assets that cannot be liquidated. You have the option of surrendering the loan's collateral in order to have the debt discharged.
Chapter 13 has a unique plot. It is essentially a repayment plan that will last between three and five years. If you are considering filing for bankruptcy under this provision, you must devise a court-approved repayment plan. This plan should allow you to repay all or a portion of your debts within the specified time frame. The caveat is that you must hand over all of your disposable income to a trustee, who will then distribute the funds to creditors. The trustee is only permitted to set aside a portion of the income for entertainment and exigencies. As long as you adhere to the repayment plan, which cannot last longer than 5 years, creditors cannot contact you for collection purposes under Chapter 13.
Filing for bankruptcy is not as simple as it sounds. You must know and comprehend the procedures, provisions, conditions, and terms, as a single minor error can lead to the case's complication. Due to the legal nature of the situation, you must consult with an attorney who can assist and instruct you on the bankruptcy filing process and its rules.
You can begin by taking advantage of the complimentary consultations that the vast majority of attorneys in this field offer. Once you do so, the attorney can evaluate your situation and determine whether or not you need to file for bankruptcy. You only need to provide pertinent information about your circumstance, and they will determine the best course of action. In the end, you will not only learn how to solve your debt problem, but also how to manage your finances in the future.
Millions of Americans have filed for bankruptcy to reconstruct their financial futures. ""Take the first step and determine if you qualify for a free, confidential bankruptcy evaluation with a local attorney.""
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