Basic Bankruptcy Information
When a person or an organization cannot repay the debts from its creditors, bankruptcy is a legal status associated with them. Anyone can be affected of this situation. For overwhelming debts, one may take a look at bankruptcy as a chance for a new start. Of course, not committing bankruptcy is really important. You may start through small things like avoiding credit card tricks.
Different Types of Bankruptcy
There are six different types of bankruptcy cases that the United States federal courts hear and decide. Here are the popular ones:
Chapter 7 Bankruptcy. In order to relieve them of their repayment responsibilities, businesses and individuals can file for this kind of bankruptcy. However, there is a requirement for this, an individual will have to liquidate his/her nonexempt assets to repay the debts.
Chapter 11 Bankruptcy. This type of bankruptcy is typically filed by people in businesses. This will allow the creditor to restructure the debts in order to repay for it. There is no requirement to liquidate ones assets here. However, the approval of the creditors and the court are needed.
Chapter 13 Bankruptcy. This works the same as Chapter 11 Bankruptcy but instead of businesses, it caters to individuals. To make sure that repayment will happen, restructuring the debts will be made. Just like Chapter 11 Bankruptcy, liquidation of an individuals asset will not be a requirement. However, restructuring plans will require an individual to pay all of the debts or a percentage.
There are also other types of bankruptcy such as:
Chapter 9 Bankruptcy. Another term given to this type is municipal bankruptcy. Obviously, this is beneficial for municipalities. Municipalities can experience debts and they can get help through this.
Chapter 12 Bankruptcy. Families of fishermen can benefit from this type which works similarly as Chapter 13 bankruptcy.
Chapter 15 Bankruptcy. This is beneficial for individuals runs an international organization. Assistance for bankruptcy debtors and foreign debtors who wants to clear debts is how this type works.
All of this can be overwhelming especially to those who are affected. However, one need not lose hope when facing these circumstances because this can happen to anyone. If we take a look at Arizona Bankruptcy issues, one can see that people have been consulting lawyers for help.
Different Types of Bankruptcy
There are six different types of bankruptcy cases that the United States federal courts hear and decide. Here are the popular ones:
Chapter 7 Bankruptcy. In order to relieve them of their repayment responsibilities, businesses and individuals can file for this kind of bankruptcy. However, there is a requirement for this, an individual will have to liquidate his/her nonexempt assets to repay the debts.
Chapter 11 Bankruptcy. This type of bankruptcy is typically filed by people in businesses. This will allow the creditor to restructure the debts in order to repay for it. There is no requirement to liquidate ones assets here. However, the approval of the creditors and the court are needed.
Chapter 13 Bankruptcy. This works the same as Chapter 11 Bankruptcy but instead of businesses, it caters to individuals. To make sure that repayment will happen, restructuring the debts will be made. Just like Chapter 11 Bankruptcy, liquidation of an individuals asset will not be a requirement. However, restructuring plans will require an individual to pay all of the debts or a percentage.
There are also other types of bankruptcy such as:
Chapter 9 Bankruptcy. Another term given to this type is municipal bankruptcy. Obviously, this is beneficial for municipalities. Municipalities can experience debts and they can get help through this.
Chapter 12 Bankruptcy. Families of fishermen can benefit from this type which works similarly as Chapter 13 bankruptcy.
Chapter 15 Bankruptcy. This is beneficial for individuals runs an international organization. Assistance for bankruptcy debtors and foreign debtors who wants to clear debts is how this type works.
All of this can be overwhelming especially to those who are affected. However, one need not lose hope when facing these circumstances because this can happen to anyone. If we take a look at Arizona Bankruptcy issues, one can see that people have been consulting lawyers for help.
