A general perspective on bankruptcy summarizes Chapter 7's content. A trustee or custodian is appointed to manage your entire estate. A portion of it must be transferred to the trustee. He will then sell this to repay a portion of your debt. The amount of equity you are permitted to retain in your property will be determined by the state's bankruptcy laws. Also in this chapter, once all of this is completed, your debt will be forgiven.
If you wish to file for Chapter 7 bankruptcy, you must meet the income requirements specified by the chapter. Also, if you have previously attempted to file for Chapter 7 bankruptcy and been denied within the past six months, you will not be permitted to do so. Additionally, you will not be eligible for a discharge if you have received one within the past eight years. This chapter is also known as liquidation or outright bankruptcy.
In Chapter 13 bankruptcy, also known as wage-earner bankruptcy, you must define a repayment strategy. If the court approves this plan, the trustee in your case will be responsible for collecting payments and distributing them to your creditors. Additionally, he will be responsible for ensuring that you adhere to your repayment plan and schedule. In addition, you will be responsible for paying a substantial trustee fee. In the case of Chapter 13, certain debtors will not be permitted to petition because the filing must fall within a certain range. Since these are subject to change, you must consult with your attorney to determine which category you fell under. Similarly to Chapter 7, if you have been rejected within the past six months, you will be unable to submit for Chapter 13.
A recommendation would be to establish a reasonable repayment plan. Overachievement has frequently resulted in irregular payments. This can result in additional complications. This Chapter is helpful for those who view their current situation as temporary and are confident in their ability to secure the necessary funds to escape. Consultation with a bankruptcy attorney is always required.""
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