--------------------------------------------------------------- Summary
Bankruptcy is when an
individual (or organization) has legally declared
inability or impairment of ability to pay
their creditors. A declared state of bankruptcy
can be requested or initiated by the bankrupt
individual or organization, or it can be requested
by creditors in an effort to recoup a portion
of what they are owed. However, in the overwhelming
majority of cases, the bankruptcy is initiated
by the "bankrupt" individual or
organization.
Types
of Bankruptcy
There are more than
one type of bankruptcy. The two main types
of bankruptcy are Chapter 7 and Chapter 13.
In a Chapter 7 proceeding,
you are allowed to keep your exempt
property, such as much of the equity in
your home. Most of your other debts, such
as money owed on credit cards, are discharged.
Chapter 13 Bankruptcy
is a type of consumer reorganization bankruptcy
filing that allows the consumer to pay off
creditors within a specific time period
of three to no longer than five years. This
is also referred to as a "wage eamer"
plan.
Chapter 13 is generally
preferable for most people as it allows the
defaulter to hold at least some property.
It is imperative to understand that a bankruptcy
does not remove all your debts overnight.
Alimony, income taxes, child financial support
and student loans are not exempt from bankruptcy
proceedings.
Bankruptcy
is a VERY large decision that should be carefully
evaluated! The impact to your credit will
be devastating, but if you need to file bankruptcy
you can recover.
Feedback
on Bankruptcy Approaches
Many consumers have had to go through bankruptcy
and still are. We would like to hear from
you so you can help other consumers like yourself
with what did work for you and what did not.
This site is trying to make
use of real
consumer feedback to help
other consumers.
What
has worked for you? Want to submit a review?
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review.
In
Brief
Bankruptcy is an option for
individuals and companies
Bankruptcy is when an entity
decides they can no longer make their obligations
to their creditors
There are different types
of bankruptcies
Bankruptcies are very negative
items on your credit report, but sometimes a viable
option
