Through the United States, the federal government has established the same bankruptcy law, which is handled by the United States Bankruptcy Court. More than one million people file for bankruptcy each year. This number is provided by individuals in Chapters 13 and 7. If the individual is an angler or farmer and is a family-owned company, individuals are also eligible for Chapter 12 qualifications.
When you file for bankruptcy and use Chapter 7, you must submit all assets to the court and assign the trustee to liquidate all items to generate funds to repay creditors. Some things are protected by law and these items are called exemptions. In Chapter 7, almost all debt, but a small amount is considered to be paid. Support and alimony, student loans are not included in this bankruptcy chapter.
You can apply for bankruptcy every seven years. The application fee is about three hundred dollars. On the other hand, Chapter 13 brought debt, but it did not cancel it like Chapter 7. With Chapter 13, you provide the court and creditors with a repayment plan, and the trust pays monthly after you give them money. They allocate and distribute funds to creditors. Through Chapter 13, you can grasp all the losses suffered in Chapter 7 of the bankruptcy. The bankruptcy of these two types of individuals helped many people to get out of debt.
If you plan to submit Chapter 13, your debt must be less than $250,000 in unsecured debt and $750,000 in secured debt. Guaranteed debt is debt with property as collateral. Unsecured debt is credit card and medical bills.
When you submit Chapter 13, your credit is not severely affected by Chapter 7, because you only pay lower debt, and Chapter 7 does not pay debt. If you submit Chapter 7, it will take many years to obtain credit, because Chapter 13 may only take two years. If you do receive credit, plan to pay high rates until your credit score improves.
If you file for bankruptcy, you need to consider the rating of your behavior when you finally decide to accept a certain type of credit card (such as a credit card or loan). If you can submit Chapter 13, it is best to submit Chapter 7, which shows you do not pay the credit line of debt.
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Orignal From: Two kinds of personal bankruptcy
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