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What Should You Do When Filing For Bankruptcy - Chapter 7 vs. Chapter 13 Bankruptcy?

What Should You Do When Filing For Bankruptcy - Chapter 7 vs. Chapter 13 Bankruptcy?
"""Several sleepless evenings pondering what to do about their mountainous debts could convince delinquent borrowers that filing for bankruptcy is their only option. Although this is a difficult decision to make, and it must have taken you months to finally make this drastic decision, this bitter pill may be the only way out of a tumultuous life revolving around debts, avoiding debt collectors, and the daily grind of trying to find ways to pay off those debts.

In comparison to what you are currently experiencing, declaring bankruptcy appears to be a pleasant option. While we're at it, let's take a closer look at what to expect in a bankruptcy scenario. The primary benefit of bankruptcy is that your creditors are legally prohibited from contacting you again once your filing has been approved. This is a much-desired scenario in which you are finally at peace, unconcerned, when a debt collector abruptly appears to intimidate or harass you into paying your debts.

The next topic is the characteristics of Chapter 7 bankruptcy. This is the proceeding in which the court decides how to liquidate your assets in order to pay off your creditors. Instead of interacting with you, the creditors will have to file court documents to obtain what they desire. Chapter 7 is not a mechanism for evading debt obligations. Filing for bankruptcy involves paying them by liquidating your assets under court supervision and direction.

The principal player becomes the court, relieving you of emotional strain. You and your creditor must now deal with the court in order to get what you want and express your intentions. You will not be required to sell your individual possessions to settle your debts. And because the court is supervising the process, you will not have to deal with creditors vying for their share of the loot.

Chapter 13 bankruptcy involves the reorganization of your income and expenses under the court's direct supervision and control in order to manage your debt. Similarly, creditors are no longer permitted to deal directly with you and must present their arguments to the court in order to obtain what they desire. Your finances will be managed, but your assets will not be liquidated. In the same breath, you need professional assistance to get the best offer and eliminate crippling debts permanently.

" - https://www.affordablecebu.com/
 

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"What Should You Do When Filing For Bankruptcy - Chapter 7 vs. Chapter 13 Bankruptcy?" was written by Mary under the Finance / Wealth category. It has been read 176 times and generated 0 comments. The article was created on and updated on 02 June 2023.
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