Read About These Bankruptcy Basics
The Federal Bankruptcy Court allows businesses and individual consumers to remove or better pay off debts by undergoing the process of bankruptcy. Liquidation and reorganization are the two umbrellas classifications.
The most common type is liquidation for consumers is Chapter-7. Under it, property of the debtor may be seized and sold by the creditor in order to pay off some of the debt. However, state law also allows for some property to remain protected from liquidation and remain the property of the debtor.
One appealing feature of Chapter-7 usually lasts around 3-6 months, as opposed to the 3-5 years of Ch.-13-bankruptcy. It may be utilized by either individual consumers under "consumer Chapter-7" or by businesses under "business Chapter-7-bankruptcy", but the methods of acquiring payment are conceptually the same. However, if an individual or organization qualifies for Chapter-13-bankruptcy, they cannot file for Chapter-7-bankruptcy.
While there are several different types of reorganization bankruptcy, Chapter-13 is the most frequently used. In contract with Chapter-7-bankruptcy, no personal property is put up for liquidation under Ch.-13-bankruptcy. All or some of the debt is paid monetarily by the debtor through a series of monthly installments, which may be ongoing for up to five years.
When considering either type, it is important to enlist the services of a legal professional such as an attorney. An attorney can help determine which type is right for you. With proper management, it can be used to eliminate credit card, unsecured loan debts, and medical bills, and help to improve quality of life long-term.
Like Chapter-13, Chapter-11 and Chapter-12-bankruptcy utilize reorganization strategies, as opposed to liquidation of assets.
Chapter-11 is targeted at businesses in serious financial difficulty that cannot qualify for Ch.-13-bankruptcy or that have nonexempt assets of great value. Chapter-11 bankruptcy is a drawn-out and expensive option and so is not a common choice for bankruptcy.
Chapter-12-bankruptcy is also appealing only to a very small target population. In order to qualify for it, applicants must be able to show that at least 80% o debt is a result of expenses from owning a family farm. Chapter 12 offers higher debt ceilings and protection from certain types of liens, but is otherwise very similar to Chapter-13-bankruptcy. Click here to learn more about chapter-12 and 13-bankruptcy.
After you have gone through the process of picking out an attorney, you will be able to stay focused on building your case. Because of the very high level of skill that attorneys have at their disposal, they will have much more luck putting your case together effectively.
The most common type is liquidation for consumers is Chapter-7. Under it, property of the debtor may be seized and sold by the creditor in order to pay off some of the debt. However, state law also allows for some property to remain protected from liquidation and remain the property of the debtor.
One appealing feature of Chapter-7 usually lasts around 3-6 months, as opposed to the 3-5 years of Ch.-13-bankruptcy. It may be utilized by either individual consumers under "consumer Chapter-7" or by businesses under "business Chapter-7-bankruptcy", but the methods of acquiring payment are conceptually the same. However, if an individual or organization qualifies for Chapter-13-bankruptcy, they cannot file for Chapter-7-bankruptcy.
While there are several different types of reorganization bankruptcy, Chapter-13 is the most frequently used. In contract with Chapter-7-bankruptcy, no personal property is put up for liquidation under Ch.-13-bankruptcy. All or some of the debt is paid monetarily by the debtor through a series of monthly installments, which may be ongoing for up to five years.
When considering either type, it is important to enlist the services of a legal professional such as an attorney. An attorney can help determine which type is right for you. With proper management, it can be used to eliminate credit card, unsecured loan debts, and medical bills, and help to improve quality of life long-term.
Like Chapter-13, Chapter-11 and Chapter-12-bankruptcy utilize reorganization strategies, as opposed to liquidation of assets.
Chapter-11 is targeted at businesses in serious financial difficulty that cannot qualify for Ch.-13-bankruptcy or that have nonexempt assets of great value. Chapter-11 bankruptcy is a drawn-out and expensive option and so is not a common choice for bankruptcy.
Chapter-12-bankruptcy is also appealing only to a very small target population. In order to qualify for it, applicants must be able to show that at least 80% o debt is a result of expenses from owning a family farm. Chapter 12 offers higher debt ceilings and protection from certain types of liens, but is otherwise very similar to Chapter-13-bankruptcy. Click here to learn more about chapter-12 and 13-bankruptcy.
After you have gone through the process of picking out an attorney, you will be able to stay focused on building your case. Because of the very high level of skill that attorneys have at their disposal, they will have much more luck putting your case together effectively.
