Thread: Bankruptcy Options

There are two bankruptcy types. The most popular is the chapter 7, and there is also the chapter 13. Chapter 7 is more difficult to file, because of the means test. Many individuals will be forced to file a chapter 13 case because of this test.

Chapter 7 bankruptcy is most common. It is a liquidation bankruptcy.Individuals, corporations and partnerships are all eligible for Chapter 7 bankruptcies. This is a simple form of bankruptcy

Chapter 11 is the most complex bankruptcy. It is generally filed by businesses. In a Chapter 11 bankruptcy filing, the debtor continues to function, maintains ownership of all assets, and tries to work out a reorganization plan to pay off creditors.

Yeah that's right, people who are faced with the overwhelming fact that their debts have grown to such a large amount that they might have to file for bankruptcy might not have a clue about how to go about this course. The first and foremost step to take is to put your bankrupt status on paper by filing for bankruptcy through the bankruptcy court. But how exactly does one go about it?
If you decide that you want to file for bankruptcy on your own, the first decision you have to make is which kind of bankruptcy you should file for: Chapter 7 or Chapter 13? Once again, these decisions cannot be made fast. So it would be a good idea to visit a bankruptcy attorneys and talk to them who might know more technical information about filing for bankruptcy.

Chapter 13 is a variation of the individual bankruptcy similar to Chapter 11 bankruptcy. It is up to individual debtors, which creates a repayment plan with their creditors, while retaining ownership of their assets. Recovery may occur over a period of 3-5 years.

hello friends,
Your first step is to contact a local attorney to find out what you qualify for. They will need to see your last 6 months of pay stubs, assets, list of all your debts and last 4 years of taxes. Once they review all your information they will be able to tell you what you qualify for. Most attorney's will see you free the first consultation.

thanks

hello friends,
Most people aren't eligible for a Chapter 13 bankruptcy, but Avvo isn't a substitute for a personal consultation. Consult a bankruptcy lawyer so you can fully disclose your and your husband's income, assets, monthly debt obligations, etc., and get some specific advice about whether bankruptcy is even the right choice, and if so, whether Chapter 7 or 13 is your better bet.
thanks

Chapter 7 and chapter 13 bankruptcy are the two sides of bankruptcy law.Chapter 7 is mostly filled by the people who ave a large amount of unsecured debts and it also refer as a fresh start. Chapter 13 is filed by the people who want to protect their property such as a house,car and other important stuff.