Generally, when it comes down to bankruptcy it seems as though it is a single, solemn word but there are actually different chapters and types of bankruptcy out there. It is important to be educated about the different types of bankruptcy chapters so that you are filing in a means that is best for you. As you have already found out, how you handle your finances will greatly control your future.
When reconstructing your financial future through default there is no room for error or you will only continue to struggle for control of your life and financial freedom.
Many people do not know that there are actually four chapters of bankruptcy, not two. These chapters are seven, eleven, twelve and thirteen. There are multiple chapters to guarantee that bankruptcy conforms to the needs of those in debt; many have different types of debt.
Chapter 7 bankruptcy is when everything you own that is not exempt is sold to pay back debts. What properties that can be exempt vary from state to state and you must file these properties as exempt when filing for chapter 7 bankruptcy. Chapter 7 bankruptcies will not relinquish money owed for taxes, crime, student loans, child support and several other cases.
Chapter 11 bankruptcy is for businesses who own more than the $1,081,400 of secured debt or $360,475 of unsecured debt. You would be able to keep your business and property and a committee will vote on whether you qualify and the payment plan that you will use as well as if and what property you will need to sell.
Chapter 12 is for family farms and they would be able to keep their property while paying debt back through whatever income is being made. This chapter is created based on qualities of other chapters.
Chapter 13 is for those who own less than $1,081,400 is secured debt and less than $360,475 of unsecured debt. Unlike Chapter 7 bankruptcy, Chapter 13 will relinquish debt incurred from criminal fines and so on. You will have a person, called a trustee, who will pay creditors your payments and your debt should be paid off within five years. Under Chapter 13 bankruptcy you will be able to keep your property.
As you can see, debt and bankruptcy is complicated; especially when it comes down to the chapters of bankruptcy, contact those at Universal Finance for assistance is finding what works for you.
