& Debtors Rights
If your debt has become
best alternative. For individuals, the
bankruptcy code offers two choices, Chapter
7 and Chapter 13. For Businesses, the
options are Chapter 7 and Chapter 11.
In a Chapter 7 Bankruptcy,
a debtor’s creditors are repaid
through the liquidation of certain assets.
The debtor files a Bankruptcy petition
with the court in which the debtor classifies
his or her property according to its type
and value. Using exemptions that have
been established in the Bankruptcy Code,
the debtor will be allowed to keep some,
or all, of his assets depending on what
they are and what they are worth. The
remaining assets are sold by the Bankruptcy
trustee to repay the debtor’s creditors.
For example, a debtor would be able to
keep his personal residence (with less
than $300,000 in equity) and 401K retirement
plan; however, he would most likely have
to give up his vacation home and personal
stock. For a more detailed explanation
of Chapter 7 Bankruptcy, use the link
below or contact
us for your free consultation.
If a debtor has
the ability to repay at least 10% of his
or her debts over the course of 3 to 5
years, then a debtor generally must file
a Chapter 13 Bankruptcy. In a Chapter
13, a debtor’s excess income is
paid to a bankruptcy court that in turn
pays the debtor’s unsecured creditors.
The payments are based on the debtor’s
ability to pay and creditors are required
to participate. At the end of the repayment
period, all remaining unsecured debts
are discharged. Another benefit of a Chapter
13 is that it will allow a debtor to catch
up on late payments, such as late mortgage
payments, without loosing their property.
Fore more information, visit the Chapter
13 page using the link below or contact
us for a free consultation.
Chapter 11 is generally
reserved for businesss who are organized
as a partnership or corporation. This
type of bankruptcy allows a business to
remain open and to reorganize and restructure