Determining what type of bankruptcy you should file can be one of the most stressful life events. Chances are if you are considering bankruptcy that you have probably gotten yourself into a financial bind that you can no longer control. In fact it is likely that this is the type of situation that is overwhelming you and something that you are struggling to accept. To make your life easier it is necessary that you understand when you need a bankruptcy lawyer, chapter 7, chapter 11, debt relief, or something else for your personal finances to be in order.
Chapter 7 or Chapter 11
When it comes to filing for bankruptcy you have to know what your options are. There are two main types of bankruptcy which are chapter 7 and chapter 11.
Chapter 7
Chapter 7 bankruptcy is total liquidation. This is the most common form of bankruptcy and happens when you literally are relieved of all of your debts. Companies, individuals, and married couples can file chapter 7 bankruptcy together.
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When you choose to file chapter 7 bankruptcy you are choosing to be relieved of all of your debts. You are being given a clean slate and starting over. Your assets are taken and sold in order to pay for some of the debt. So you are being relieved of your debt but it is coming at the cost of giving up some of your assets. Things like cars, motorcycles, and unnecessary items worth money will be seized and sold.
Chapter 11
A chapter 11 bankruptcy is different. There is no limit to how much money a debtor owes. This is something that was not always available for individuals. It was originally something that only businesses could file for. A chapter 11 bankruptcy requires some repayment that has to be made. Some of the debt will be relieved but other debt is going to require that a repayment schedule be made. This is something that can be used as a way of being able to reduce debts that you can not afford to pay.
Personal Finance Options
Filing bankruptcy is something that should not be taken lightly. If you think that you can manage with secure personal finance options then this is something that can really work for you. There are a number of great personal finance options out there. These include options for debt relief and more. If you are considering the option of filing a bankruptcy then looking at the personal financing options available is crucial.
Of course if you have to file for bankruptcy you should know that there is life after bankruptcy. There are things that you can do to quickly improve your credit and raise your credit scores. Doing this is something that is going to make life considerably easier for you.
