Bankruptcy is meant to give you some relief from your debts and pave a way towards a better life. When a person declares bankruptcy he gets rid of all his debts.
There have been many cases of bankruptcy that relate to different people and different circumstances. There are a number of chapters under which bankruptcy can be filed. Amongst all these chapters, there are four chapters that are very common. There are two that apply to majority of the people but all these four listed chapters see many cases. Here are those four chapters.
Chapter 7 remains to be the most taken of all the chapters. It relates to liquidation. In this process, when the person declares bankruptcy, his assets are sold and the amount is distributed between the lenders. This chapter does not protect the person who is involved in a fraudulent loan or credit.
Second in row is the chapter 13. The best part about this is that the debtor gets to pay back his amount of loan in a reorganized way. You can get a repayment plan for yourself and get rid of the debt easily. This chapter is for people who have a regular income. This way you can prevent foreclosures as well.
Chapter 12 too has a number of takers. This applies to family farmers. Under this chapter the farmers can pay back the lenders in the future by taking up an organized plan. After these three chapters comes chapter 11. This applies to business organizations. Although it may apply to every business but there are certain pre-requisites for filing bankruptcy under this chapter. The debtor presents the lenders with a repayment plan and all the lenders give their vote for it. If the lenders accept it the plan is started.
It may be difficult for you to know which of the chapters is the most suitable for your case. Come to bankruptcy intro and fill up our free evaluation form. After evaluating the situation, we would refer your case to an expert lawyer. He would then help you further and advice you on filing bankruptcy. We have a wide network of lawyers that are dedicated to serve you. If you need any assistance, come to us and let our lawyers guide you through this process of bankruptcy.
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About The Author:
JD Kamat is a owner of BankruptcyIntro.com. We’ve all heard of large companies filing for bankruptcy or “going bankrupt” and most of us would think that particular company must be in trouble.