Bankruptcy Laws in the US are meant for protecting both the lenders as well as borrowers in cases of a sticky situation wherein the borrower is unable to pay his or her debt. There are various chapters in the US bankruptcy code under which bankruptcy is filed by a private individual or a business firm. These are Chapter 7 Bankruptcy, Chapter 11 and Chapter 13. But before filing for bankruptcy it is important to make sure that it is the very last option available. One of the major fall outs of bankruptcy filing is that it may be seen in your credit history for as long as ten years. In fact it is mandatory for the entire bankruptcy applicant to visit a credit counselor authorized by the US government so that all other possibilities like debt relief or debt consolidation can be explored before finally deciding to go ahead with bankruptcy procedures. Following are some useful information on bankruptcy procedures:
Bankruptcy Attorney Dayton Ohio, Bankruptcy Attorneys, Bankruptcy Lawyers In Columbus Ohio,
Chapter 7 Bankruptcy Information
Chapter 7 of the US Bankruptcy code lays down the regulation in case of the only option available is to liquidate all non exempted assets to repay the creditors. The chapter 7 is generally selected when the current income is too less (or nil) to repay the debtors and the assets in hand are less. Then the bankruptcy court may decide for the chapter 7 procedure, where your assets will be liquidated and to repay your lenders. The remaining debt is normally written off by the court. The good point in this procedure is this it is relatively quicker than the others and final settlement can be reached within months. And the biggest drawback is you won't be able to save your assets.
Chapter 13 Bankruptcy Information
This bankruptcy code allows the private individuals to restructure their debts in consultation with their lenders and the court appointed trustee. The terms of repayments are modified so that the debt can be paid off within the stipulated time of 3-5 years. The drawback is that this procedure takes longer but the positive point is that once the individual pulls through he is able to save most of his assets.
Chapter 11 Bankruptcy Information
The procedure under chapter 11 lays down the laws for a business entity to reorganize itself as well as restructure its loan with the consent of the creditors over a stipulated time. Not only is it a time consuming procedure but the cost to file for bankruptcy under chapter 11 is higher.
Bankruptcy procedures should be opted only after every other possibility has been explored and exhausted. It is highly advisable to hire a bankruptcy lawyers who would not only guide you how to file for bankruptcy but which chapter would be appropriate for you to file for bankruptcy.
Sacramento Bankruptcy Attorney
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Sacramento Bankruptcy Attorney
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment