Article from Bankruptcy Resources
What Is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is designed for people who have very few assets and lower incomes. In order to qualify for a Chapter 7 bankruptcy, you need to make below the median income in your state. Then you may be required to turn in your car and sell off any other liquid assets. The money you receive will be given to the court and divided among your creditors. Once this happens the rest of your debts are discharged, and you no longer need to pay anything to anyone.
What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is designed for most consumers. The court will set up a debt repayment plan that will clear up your debts in the next three to five years. This plan allows you to keep your home and your car because you will continue to be making payments. You must make your payments to the court on time during the length of the bankruptcy. Once you have completed the payment plan, the rest of your debts are discharged. You are considered as being the process of a Chapter 13 bankruptcy until you have completed making the payments according to the plan.
Business bankruptcy is handled differently from consumer bankruptcy. There are several different types of bankruptcy, and the type of business bankruptcy your company will use depends on factors like whether it is a sole proprietorship or a partnership or corporation. The types of debt that you have will also determine the bankruptcy. These debts are rarely completely discharged. You should contact a business bankruptcy attorney before you go this route.
How to File Bankruptcy
You should contact an attorney to learn how to file bankruptcy in your state. Although some people may say that you can file bankruptcy on your own, you really should contact an attorney. It is a complicated process, and it makes take a while for everything to go through. You will need to begin by receiving the consumer credit counseling and working out a possible payment plan. If that does not work, then contact you, attorney. You should continue to make monthly payments if possible until your bankruptcy is followed. You should also stop using all of your credit cards and revolving lines of credit.
Carolyn Secor is a Clearwater bankruptcy attorney and Clearwater foreclosure attorney serving Palm Harbor, New Port Richey, Oldsmar, Tarpon Springs, Seminole, St. Petersburg, and the Tampa Bay area.