Did you know that you have alternatives to filing for Chapter 7 bankruptcy? If you do not qualify or do not find the provisions in Chapter 7 bankruptcy to be appropriate for your financial situation, you could pursue personal bankruptcy proceedings under Chapter 13 of the bankruptcy code. This alternative form of filing can let you to keep more of your personal property, allowing you to move forward with your financial success faster than you thought possible.
When it comes to filing bankruptcy, most people have usually heard of the two different kinds of personal bankruptcy known as Chapter 7 bankruptcy, which wipes the slate clean of most types of debts and Chapter 13 bankruptcy, which allows individuals to pay back creditors over a period of time. These two federal programs were designed with the intent to provide relief to individuals who have gotten behind on their bills and have more debt than they are able to handle.
If you have ever considered bankruptcy, you probably know that when you file a personal bankruptcy, there are generally two ways that individuals or families are allowed to file. That would be thought Chapter 7 bankruptcy, which is typically known as a liquidation bankruptcy since it usually wipes out most types of debt, and Chapter 13 bankruptcy, which is considered a type of reorganization bankruptcy.
Deciding whether or not to file bankruptcy is a difficult decision for a person to make. Filing bankruptcy not only affects your credit, it can affect your reputation and even your self-esteem. Before you decide to move forward there are some things to consider.
Millions of Americans file for debt relief through bankruptcy each year. The Bankruptcy Code was written to be a financial safety net for individuals who are facing mounting debt. Whether through job loss, reduction in hours, divorce or medical emergency, financial peril is usually only a few paychecks away. Fortunately, depending on your circumstances, you have numerous legal options.