Which Types of Bankruptcy Are Now More Difficult to File?

Which Types of Bankruptcy Are Now More Difficult to File? """Bankruptcy is a method of debt relief for those who are unable to repay their creditors. The majority of debtors elect for chapter 7 and chapter 13 bankruptcy. Under chapter 7, a debtor's assets are sold at auction to generate funds. This fund is then used to settle the debtor's financial obligations to creditors. The court then writes off any loans that cannot be repaid using this method. This enables the debtor to start over financially. The majority of debtors who wish to petition for bankruptcy do so under chapter 7.

Chapter 13 bankruptcy is a court-ordered repayment arrangement. A debtor must repay his unsecured debts in accordance with a new repayment plan. This involves registering with a credit counseling service and devising a repayment strategy.

Numerous debtors utilized bankruptcy to escape their obligations. To stop this abuse and protect both the debtor and creditors from the aftereffects of bankruptcy, stricter bankruptcy laws have been enacted.

If the debtor's income is greater than the state's median income, he must take a means test in order to qualify for chapter 7 bankruptcy. This test takes into consideration the individual's income and debt situation and determines whether the individual's income is sufficient to pay off their debts after meeting the basic expenses for a decent lifestyle. Only those who pass this test are eligible to register for chapter 7 bankruptcy.

The process of registering for bankruptcy has become so cumbersome that individuals are seeking alternative debt relief strategies to resolve their debt problems.""

" - https://www.affordablecebu.com/