Turning The Page On Your Financial Situation
Many people are familiar with the terms "chapter 7" or "chapter 13," when it comes to bankruptcy filings. There are actually several different choices, when it comes to taking advantage of the bankruptcy code numbers to create your own fresh start.
Chapter 7: The liquidation bankruptcy – When you hear that a friend or family member is declaring bankruptcy, you might automatically assume they are declaring chapter 7. This form of bankruptcy is popular for a good reason – it automatically resolves a debtor of most debts and allows a true fresh start. Unfortunately, a chapter 7 bankruptcy can have some negative consequences, in certain cases, because the bankruptcy trustee is empowered with the ability to remove property and sell it, to pay off your creditors.
Chapter 13: The re-organizational bankruptcy – Many consumers turn to this form of bankruptcy, when they want to pay their debts but need a bit more time to do so. The bankruptcy trustee allows chapter 13 filers to discharge some late fees and penalties and take longer to pay off the debts. When the repayment period is over, any remaining balances are forgiven. This form of bankruptcy can be looked upon as more favorable by creditors.
Chapter 11: The business bankruptcy – If you are familiar with the financial travails of businesses like Big K and others, you may have heard of chapter 11. It works for businesses the same way that a chapter 13 bankruptcy works for consumers, in that it allows them to reorganize their debts. Businesses under chapter 11 can remain in business.
Chapter 12: The seasonal bankruptcy – This chapter focuses on those who fish and farm for a living and takes into consideration the cyclical nature of the financial flow unique to those jobs. Chapter 15 is also very similar to chapter 13, in the way it reorganizes the debts particular to the farming community and fishing industry.
Chapter 15: The jet-setter bankruptcy – If you have assets and debts in more than just the United States, chapter 15 is a must for you. Obviously, other countries deal with consumer debt in varying ways, and this form of bankruptcy involves the courts working in tandem with them to resolve financial issues, pay off some debts, and discharge some of the debt for the consumer.
To find out what type of bankruptcy is best for you, speak to a bankruptcy lawyer and get the debt relief you need.