Millions of people around the world face increasing debt when faced with situations at some point in their lives. For many people, there is no choice but to apply for personal bankruptcy. If you have a difficult financial situation, you first need to know if you qualify for personal bankruptcy. Certain income and debt levels must be met to submit. [1945900] The most popular form of bankruptcy is called Chapter 7. According to Chapter 7, all of your non-exempt assets will be transferred to your creditors or liquidated. Exempt properties often include things such as basic household furniture and vehicles. Then there are others who may be eligible to apply for Chapter 13 bankruptcy. According to Chapter 13 bankruptcy rules, the court will allow those who work in a stable manner to retain some of their property, such as their car or family. In this case, the bankruptcy court will approve a repayment plan that allows you to use future income in order to repay the debt within a certain period of time.
Chapters 7 and 13 bankruptcy both help eliminate unsecured debt. They also stopped the debt collection process, foreclosure, decoration and recovery. Both also allow different types of exemptions. These exemptions usually vary from country to country. In fact, there are many laws in state-to-state bankruptcy. It is better to hire a bankruptcy lawyer with a reputation and experience. They know the general laws of your state and can guide you through the entire personal banking declaration process.
You also need to remember that bankruptcy will not eliminate your secured debt. If your mortgage payment defaults, you may still lose your accommodation. The law also requires that you pay off other debts, such as child support, alimony, and income tax. The good news is that once you apply for bankruptcy, you can get a clean slate. Then you can start again.
Although debt levels and income levels are some of the eligibility criteria for applying for personal bankruptcy, in most cases this is the reason for a bankruptcy judge. For example, if the judge reviews your financial situation and thinks your salary is sufficient to repay your debt, they can dismiss your filing.
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Orignal From: Are you eligible to apply for personal bankruptcy?
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