The Different Types Of Bankruptcy

The laws regarding bankruptcy have changed recently, but there
are still options available to you if your debt has grown out of
control and you have found yourself unable to repay them
Bankruptcy laws give debtors a way to divide their assets among
creditors and completely eliminate some debts after the assets
have been distributed
Due to the recent changes, you may have to undergo credit
counseling prior to filing bankruptcy, but as a debtor you are
entitled to file bankruptcy as a way to reorganize or eliminate
your debts
People wanting to completely eliminate all outstanding debts
generally use Chapter 7 bankruptcies Business can also file
Chapter 7 if they plan to liquidate all assets and close
permanently Under a Chapter 7 bankruptcy, an individual may
keep certain property such as a home, automobile, tools of
trade, and various other properties
Some property however, may be lost during the bankruptcy
proceedings A trustee will control the debtor’s assets during
the bankruptcy process and those assets will be divided among
creditors as the trustee sees fit Upon discharge of the
bankruptcy, the control of any remaining property is returned to
the debtor and all outstanding debts that have not been
reaffirmed will be gone
Chapter 13 bankruptcy is for those who wish to pay all their
outstanding debts but have found themselves unable to do so
Chapter 13 allows individuals to reorganize debts and structure
payments differently so that the debtor can afford to make
payments over time
In the case of a business wanting to reorganize, Chapter 11
bankruptcy is the appropriate choice Filing bankruptcy is a way
out of debt for many people and businesses Consult with a
professional to make sure that bankruptcy would be the best
choice for you before you make any final decisions

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