How To File With Each Type Of Bankruptcy!_53824

For individuals there are two types of bankruptcy including Chapter 7 in which all of their debts are essentially eliminated and Chapter 13, in which their debts are paid off over a 5 year period of time, supervised by a trustee from your court. If you are a business on the other hand, you will have to file under chapter 11. In Chapter 11 the business will be able to reorganize its debts or renegotiate so as to stay in business. A quick consultation with a bankruptcy attorney will help determine which of the types of bankruptcy the individual qualifies to file under. There are certain tests administered to determine if the individual qualifies to file Chapter 7 under the new bankruptcy laws. The main part of the test for an individual will consist of an income calculation to find out whether or not the individual has a monthly income that is higher than the state average, if he or she does the individual would then have to file under chapter 13 and would not be allowed access to chapter 7. In Chapter 7 bankruptcy, all debts, including secured and unsecured can be discharged. However, some assets owned by the individual may be confiscated and sold by the court in order to satisfy a portion of the secured debt. So out of the two different types of bankruptcy an individual can file under, chapter 7 will reward the most financial relief. The paying off of debt over time If the individual cannot qualify for a chapter 7 bankruptcy, they will still be able to file for chapter 13. In doing so they will be obligated to make payments on a monthly basis to a court trustee,Black Uggs Boots, who will in turn send out the payments to the individuals different creditors. Out of the two individuals types of bankruptcy, chapter 13 and chapter 7, chapter 13 will help the individual to make good all their financial obligations and at the same time hold back creditors from attempting to take collection actions against the debtor in question. Not too long ago it was not uncommon for people to start out with a chapter 13 bankruptcy, but soon after find themselves incapable of meeting with the obligations and so were able to make the move into a chapter 7 bankruptcy instead. Under the new bankruptcy laws, which went into effect in 2005, the choice between the two types of bankruptcy is determined by the courts means test. So quite simply if the person has the means (the current income level), so as to be capable of paying off their debts, they will have absolutely no choice but to go for a chapter 13 bankruptcy. Whether you file for chapter 7 or 13, any assets or initial payments will first go to creditors with priority access. Priority access will be granted to but not limited to,Chocolate Uggs Boots, student loans,UGG Kids Classic Short, part income taxes and generally most other government obligations you may have. Once all of your creditors with priority access have been dealt with the payments to unsecured creditors will start to take place. When you've filed bankruptcy the fact that you have done so can stay on your public record for as long as 10 years into the future! So you really must carefully consider all your options before taking on a bankruptcy, bankruptcy should always be your last option.