Currently bankruptcy has become more common and people are filing every minute. With the economy and job situation the way it is many are finding themselves in need of debt consolidation or bankruptcy. The types of bankruptcy talk about here are Chapters 7, 12, 13, 9 and 11. Knowing what each chapter is and what it means to you is very important in any situation.
Chapters 13 and 7 are meant for individuals. Chapter 9 pertains to towns and cities. Chapter 12 pertains to fishing and farming family businesses while chapter 11 is used by commercial businesses and is also known as reorganization of a business.
Chapter 7 is one of the types of bankruptcy that consists of the debtor selling most of his or her non-exempt assets to pay back creditors. You would have to check federal laws to find out what is non-exempt and what is not. The reason for filing a chapter 7 is to receive a discharge on your present debts. This is only granted if you follow the proper conduct of the bankruptcy codes. If you are found to have committed any misconduct, the court will deny the discharge. If you do receive a discharge, you may be responsible for many of the debts you have incurred. Some of things you will have to pay if the judge issues a discharge are:
* Taxes
* Student Loans
* Property settlements
* Fines and Penalties
* Criminal restitution and forfeitures
* Personal injury claims
If you file a chapter 13, you are required to have a repayment plan to pay your creditors back. This usually includes reductions that creditors give for paying. You have up to five years to pay the money to creditors. With a chapter 13, you cannot discharge debts for these things, which you can if you receive a full chapter 7 without any discharge.
* Taxes
* Student Loans
* Property settlements
* Fines and Penalties
* Criminal restitution and forfeitures
* Personal injury claims
* Child support and alimony
Anglers and farmers usually file under a chapter 12 as long as the business is family owned. They need to provide a list of creditors, assets along with liabilities and all documentation of their financial affairs. They are also given time to repay their obligations, although reduced quite a bit.
If you file for bankruptcy, you stand a good change of having better luck at getting credit, but at the same time, some creditors look at bankruptcy and will not give credit to the parties involved in the bankruptcy proceedings. It is a toss up if bankruptcy is good or bad for you; no one creditor has the same viewpoints on the subject.
You can also find more info on Bankruptcy Attorney and Bankruptcy Code. Filingpersonalbankruptcyhelp.com is a comprehensive resource to get help in Bankruptcy.
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