Filing Chapter 7 bankruptcy generally requires surrendering non-exempt assets and property for liquidation and distribution of the proceeds. A bankruptcy attorney is the best source for help in understanding what constitutes exempt and non-exempt property and assets.
Did you know that a Chapter 11 bankruptcy is the one most used by corporations and companies? However, it can also be effective for individuals who want to maintain some control in their own debts management and settle with creditors over time. In some cases, the debtor may even be allowed to be a “debtor in possession,” allowing for more freedom in his or her case.
Have bankruptcies become more difficult to qualify for since the 2005 revision of federal bankruptcy laws? According to national statistics, by 2010, bankruptcy filings approached the numbers seen before the law was changed, indicating any reduction was only temporary.
You don’t have to have bad credit to consider bankruptcy. In fact, many people who file for bankruptcy have been making timely payments for decades before ending up in a dire financial situation. It can be better to file for bankruptcy now than wait for things to get really bad.
Under Chapter 13 bankruptcy, basically the trustee designs a repayment plan for the debtor, with the goal being that within 2 to 3 years they’re able to repay their debts. This repayment plan is made affordable so that you are able to pay off the owed amount.
If you owe more than you own and are considering bankruptcy, you should talk to a lawyer before proceeding. Timing is important, and filing for bankruptcy prematurely could cause you to acquire additional debt that isn't included in your settlement.