Not All Bankruptcy is the Same: Make Sure You’re Filing Correctly

Not All Bankruptcy is the Same: Make Sure You’re Filing Correctly

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If you are thinking about filing for bankruptcy, you need to be sure you file the right kind. Not all bankruptcy is the same, and the conditions that you go through vary with each. There is no one size fits all formula for people and their financial issues. Depending on the amount of debt you have, the type of debt it is and how much you have in investments might partly decide which type of bankruptcy you should submit. Below are some of the different types of bankruptcy you should be aware of if you are filing personal bankruptcy.

Chapter 11 Bankruptcy

Chapter 11 is one of the more complicated kinds of bankruptcy that people can file. Nevertheless, it is usually registered more by organizations. Most of the Chapter 11 cases are too expensive for most consumer debtors.

Chapter 13 Bankruptcy

hapter 13 bankruptcy is a type of restructuring of your credit card debt. Instead of everything being pardoned in your bankruptcy, you might have to pay back some of your debt. This allows you to keep your home or other large resources. This is one main reason people look at filing this type of bankruptcy.

Chapter 7 Bankruptcy

The most common type of bankruptcy for individuals is Chapter 7. This type of bankruptcy can completely wipe out a person’s credit card debt granting them full forgiveness of debts owed. If, however, you committed any improper conduct as defined in the Bankruptcy Code, the Court might deny your discharge.

When you file a Chapter 7 bankruptcy, a trustee takes over possession of your property. The trustee liquidates any non-exempt property and uses the money to pay off creditors. Once you receive a full discharge, there is still some debt that is not discharged due to the law. Consequently, you will be responsible for student loans, taxes, child support, alimony, debts for personal injury or death caused by driving under the influence of drugs or alcohol and criminal restitution. In some cases, you can keep specific property that you purchased subject to suitable security interest. Some of these items include renewal or reaffirmation of some existing debt pre-bankruptcy and redemption. A bankruptcy lawyer can let you know the options available to you.

When you understand the various types of bankruptcy offered to you, the next step is finding a good bankruptcy lawyer. Most attorneys provide a free consultation so that you can see if you want to employ them to help you with your bankruptcy case. Consulting with a bankruptcy professional can probably lessen the anxiety and panic that might come with the bankruptcy process.

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