Friday, June 3, 2011
Wednesday, June 1, 2011
Personal Bankruptcy
If you're struggling to change your financial life, the first step is understanding the options. Learn how the personal bankruptcy protections in the U.S. Bankruptcy Code have helped people across the United States with credit card debt, pending home foreclosure or other urgent financial matters.
The U.S. Bankruptcy Code offers two different personal bankruptcy protections: Chapter 7 bankruptcy and Chapter 13 bankruptcy.
Chapter 7 bankruptcy works to excuse, or discharge, unsecured debts. Unsecured debts may include credit card debt, medical bills, payday loans or other debts that are not tied to a specific item, like a home, car or boat.
Chapter 7 bankruptcy works through a "liquidation", or sale, of the debtor's non-exempt assets—but many Chapter 7 debtors find that all of their property is exempt and there is no liquidation.
On the other hand, Chapter 13 bankruptcy may help stop foreclosure or repossession through a 3-5 year repayment plan. The payment plan allows the breathing room to catch up secured debts over time while keeping most property.
The U.S. Bankruptcy Code offers two different personal bankruptcy protections: Chapter 7 bankruptcy and Chapter 13 bankruptcy.
Chapter 7 bankruptcy works to excuse, or discharge, unsecured debts. Unsecured debts may include credit card debt, medical bills, payday loans or other debts that are not tied to a specific item, like a home, car or boat.
Chapter 7 bankruptcy works through a "liquidation", or sale, of the debtor's non-exempt assets—but many Chapter 7 debtors find that all of their property is exempt and there is no liquidation.
On the other hand, Chapter 13 bankruptcy may help stop foreclosure or repossession through a 3-5 year repayment plan. The payment plan allows the breathing room to catch up secured debts over time while keeping most property.
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