Complete Guide for Filing Chapter 7 and Chapter 13 Bankruptcy
Chapter 7 and Chapter 13 Bankruptcy are the two forms of bankruptcy which a lawyer can choose, the first one is called as liquidation bankruptcy while the other one is called as wage earner plan, depending on the financial condition of the borrower he can choose any one plan. If a person has caught himself in the nasty trap of debts and his financial conditions are not strong enough to pay his debts than he must be in dilemma of what he should do and what he should not do. May be he is planning to file personal bankruptcy. But is he aware about the facts that there are two type of personal bankruptcy and a person has to choose only one. The laws of bankruptcy has given to option to folks who are willing to file for personal bankruptcy. All these details can be obtained from Bankruptcyonly, a leading name in bankruptcy service provider. The first option is to prefer Chapter 7 bankruptcy requirement which is also called as straight bankruptcy. The second option is to choose Chapter 13 bankruptcy which is called as the wage earner plan. Personal bankruptcy information needs to be provided in both bankruptcy processes. Chapter 7 bankruptcy It is vital for a person to understand that Chapter 7 bankruptcy is the most common type of bankruptcy and its usually called as liquidation or straight bankruptcy. When folks talk about personal bankruptcy they have the concept of liquidation bankruptcy in mind. Thus one must note that liquidation bankruptcy is not the only type of personal bankruptcy. According to the chapter 7 bankruptcy all the assets are sold off, under the administration of the trustee which is appointed by the court. The collected money is then used to pay the debts of the creditors. But, now with the new bankruptcy law everyone cannot qualify for this type of bankruptcy. It’s compulsory for persons to pass the means test and go though the approval process. Filing bankruptcy online can also be done with Chapter 7 bankruptcy. Chapter 13 bankruptcy Chapter 13 bankruptcy is called as reorganization personal bankruptcy or wage earner plan, in this type of bankruptcy the assets are not sold off. Instead a person is asked by the bankruptcy court to continue his business venture and simultaneously pay the reduced claims of the creditors. As per the form of this bankruptcy one may be granted his request to pay the debts at the rate of 75 cents on one dollar or may be less. Basically there are two kinds of personal bankruptcy Chapter 7 and Chapter 13, the first one is called as liquidation while the other is called as wage earner plan. Business bankruptcy is also there, wherein one can get relieved form his business debts. Should I file for bankruptcy is a borrower’s decisions and if yes than which bankruptcy should I choose? Visit Bankruptcyonly to know more about filing bankruptcy, its cost and how to find the best lawyer.
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