Personal Bankruptcy – Not Something To Be Anxious About
Several thousands of Americans file personal bankruptcy even when they have better options available to them. A bankruptcy can stay with you for your life. Bankruptcy lawyers and counselors tell you that bankruptcy gives honest debtors a fresh start. Keep in mind, the fresh start is a costly restart of your financial life. Avoid it if you can. If it is inevitable, you need to know your rights, limitations, and future possibilities.
Chapter 7 and Chapter 13 are the two personal bankruptcy choices available to individuals. Chapter 7 is about liquidation of assets. It gives immediate relief of debts. The trustee liquidates the assets and repays the creditors. The property for which the debtor has a right is not liquidated. There is little or no nonexempt property under Chapter 7 bankruptcy cases.
Another option is Chapter 13 bankruptcy. There is no immediate discharge of debts in this type of bankruptcy. This is filed by persons who have a regular income. The debtor promises to repay the debts over three to five years. The debtor can keep his or her properties. In both cases, the creditors are not allowed to initiate any …