Fortunately you usually are not stuck with just one kind of bankruptcy but there is a choice. This most often depends on the debt owed and your financial circumstances. I have listed below several of the available bankruptcy alternatives. Read them carefully and you’ll understand your position a little better and will also be able to comprehend your attorney more if you discuss the issue later.

One of this categories of personal bankruptcy may best fit the bill:

Chapter 13

Often referred in order to as “wage-earner” personal bankruptcy. Under chapter 13, a debtor with a regular wage or some other source of typical income can still pay some or all of their debts back for their creditors under a court-approved repayment strategy. Sometimes this may of great benefit as you can usually keep your property and you need to agree to pay a part of your income to your creditors. The court need to approve your repayment plan and your budget. Usually, a trustee is appointed and which collects the repayments from you, pays your credit card companies, and makes sure you surpass the terms with the proposed repayment routine. There’s a trustee payment in these pay back plans and sometimes it is not inexpensive.

In addition, there are specific requirements to declaring a chapter 13 besides an everyday income. At the time of writng, you must owe below $250, 000 in noncontingent, liquidated, unsecured debts and owe below $750, 000 in noncontingent, liquidated, secured debts. If you filed a prior bankruptcy petition as well as the prior proceeding was dismissed within the last few 180 days, you may not be able to file a subsequent petition. This is a good thing to conult the attorney on. chapter 13 bankruptcy information

Chapter 7

Often related to like a “straight bankruptcy”, chapter 7 is the most frequent for individuals as well as the one many people are familiar with. Most or most debts are baulked under chapter 7. Usually a trustee is appointed to consider over your house. As discussed earlier, some specific assets must be surrendered to the trustee or sold so as to reimburse your credit card companies. You may be able to keep some personal items and perhaps real estate with regards to the law of their state. There is a discussion below regarding exemption of property. Be aware when you filed a prior bankruptcy petition as well as the prior proceeding was dismissed within the last few 180 days, you may not be able to file a subsequent petition. You would be well advised to fulfill with an attorney with this matter if you have filed within the final 180 days.

If you were either granted or perhaps denied a chapter 7 discharge in a prior case within the last few 6 years, you might not be entitled to receive a release from bankruptcy and probably are not a candidate for any chapter 7 personal bankruptcy proceeding. Although, there can be some exceptions. chapter 11 bankruptcy information

Chapter 12

This is for family farmers and is comparable to chapter 13.

Chapter 11

Chapter 11 is mostly related to business while this article is just for individuals.

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