How Filing Bankruptcy Can Be the First Step to Rebuilding Your Credit
Chapter 7 of the Bankruptcy Code provides for liquidation proceedings to be administered by the bankruptcy cell of the district courts. This means that debtors revolve over all non excused property to a case trustee assigned by the court. The case trustee then sells & converts all the properties to cash & pays back the creditors.
For individuals who are struggling with their finances but have student loans to repay, the issue of bankruptcy is one that may not be an alternative. It doesn't matter if the student is still in school or they have recently graduated.
On the other hand, Chapter 13 is a restructuring of your debt. You will commit to making payments for the next 3 to 5 years, at the end of which your bankruptcy is complete. Chapter 13 allows you to keep your home if you continue to make the mortgage payments as agreed.
Chapter 13, on the other hand, will more likely help a homeowner keep his/her home. While Chapter 13 requirements are also stringent, requiring the debtor to make enough money for regular payments and to keep up with payments, it will usually protect a home from being foreclosed on if the consumer works to make every payment. Something homeowners need to be aware of is that if they do not make their scheduled payments, they can still put all of their property in jeopardy of being lost.
Don't forget that if this article hasn't provided you with exact Bankrupt information, you can use any of the main search engines on the Internet, like Ask dot com, to find the exact Bankrupt information you need.
and it is granted to you, then you will have to surrender your properties, or at least the ones that were not exempted by the law. These will be surrendered to the trustee who will liquidate them and use the money to help pay off your creditors. It does not matter if you own enough property to pay off the debts in full, they will still take the property and use as much as they can to help pay your creditors. After this process the debts will be discharged and you will not have to pay on them again. You can receive a discharge of your debts through Chapter 7 only once every six years.
In all instances of bankruptcy, plans are presented, creditors vote, and the court makes thousands of reviews until a verdict is agreed upon. If the plan can't be be confirmed, the court can do one of two things: liquidate the business under Chapter 7 or dismiss the case.
After filing the initial petition, it would be the job of the attorney to write a proposal for repayment of the outstanding debts. The proposal should be detailed and complete, including all debts to credit cards, banks, and any other businesses and institutions. It is important that the plan drawn up by the attorney is feasible and can be carried out by the debtor.