After you file bankruptcy, you may realize that your life has changed for the better. You will stop getting calls from creditors and you can start your life afresh. However, what exactly happens after bankruptcy will depend on what type of bankruptcy you have filed for.
Filing for chapter 11 bankruptcy is a complicated process. Chapter 11 offers you a possibility to carry on with your business while you develop a payment schedule to pay back your creditors. Individuals having their own business can also file for chapter 11 bankruptcy.
Chapter 11 bankruptcy is a type of bankruptcy in which the option of reorganization is made available to the business corporations, partnerships and individuals. Here, “reorganization” means continuing business and at the same time repaying the creditors as per an agreed repayment plan.
Chapter 13 bankruptcy is not meant for corporations or partnerships. It is for regular-income people. Also, there is a certain amount (a maximum limit) of secured and unsecured debts that you can owe in order to be eligible for filing for chapter 13 bankruptcy.
Chapter 13 bankruptcy is meant for people with regular incomes. Chapter 13 bankruptcy law involves charting out a repayment schedule for the debtor in order to make it possible for the debtor to repay the debt over a 3-5 year period.
Once you have decided that declaring bankruptcy is the only way out of your debt problems, and after you have cleared the eligibility criterion for filing chapter 7 bankruptcy, you have to ready yourself for the actual process of filing bankruptcy. There are various ways of doing so and you are free to choose the most suitable option for yourself.
Chapter 7 is the most common kind of bankruptcy that is filed by debtors in US. Chapter 7 bankruptcy of the Title 11 entails the United States Bankruptcy Code and it manages liquidation.
Opting for bankruptcy is one thing and how to go about is another. Once you have made up your mind to go for bankruptcy, the next thing is where to start. So here is all you need to know when filing bankruptcy.
If you want to file a bankruptcy case, then bankruptcy attorney is the person who can guide you in the right direction. An attorney can help you ascertain your actual current income under the bankruptcy law and potentially cut down your debt or stop foreclosure on your home.
Bankruptcy laws are often complex enough to be comprehended by a consumer, and in most cases professional guidance will be needed to grasp the Bankruptcy laws. Although professional guidance is advisable, and in some cases mandatory, it will serve good purpose to have a brush up with bankruptcy filing laws.