Regardless of which bankruptcy law you choose and implement from the bankruptcy code, you must adhere to specific procedures for your debt to be considered satisfied. These are the types of bankruptcy petitions: debt repayment (Chapter 13), liquidation (Chapter 7), family farmer or fisherman (Chapter 12), and reorganization (Chapter 11). Each type of bankruptcy is handled differently, and your personal bankruptcy is no exception.
Chapter 13 allows you to repay your debts and obligations over a specific period of time; depending on your personal bankruptcy, the court may grant you up to 5 years to make all payments.
Chapter 7 bankruptcy allows you to repay your debts with your personal assets. This means that your assets and possessions will be evaluated by a trustee appointed by the court, who will hang on to them during the bankruptcy process. Once these assets have been converted to cash, you may use this money to settle your personal debts. This period varies depending on your personal bankruptcy situation and the form of bankruptcy you have filed. When you file for Chapter 7 bankruptcy, it will remain on your credit report for ten years.
Chapter 11 assists businesses in reorganizing their financial administration in order to increase their profit margins. These additional proceeds will be used to settle any debts owed to creditors.
In the interim, once you have filed for bankruptcy, you should seek out the most effective means of handling all obligations and debts, either through credit rehabilitation counseling or by reorganizing your company's financial status. A bankruptcy attorney or counsel can assist you in planning a free credit repair and rescuing you from this difficult situation. Bankruptcy procedures can be mind-boggling, so it may be a good idea to seek professional assistance by hiring a finance analyst to help you plan an adapted financial plan or a bankruptcy attorney to help you prepare an effective credit repair strategy.
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