Bankruptcy is a procedure that is designed to relieve debt to consumers who have fallen on hard financial times and cannot afford to pay their existing debts.
While there are many types of bankruptcy out there, the most commonplace are chapter 7 bankruptcies and chapter 13 bankruptcies of the bankruptcy code.
Chapter 7 is the most common for the individual. It is the complete erasing of qualifying debt. The debtor is then released from all repayment obligations. But chapter 7 bankruptcies are not to be taken lightly.
While giving you an immediate fresh start in repairing your finances, it remains on your credit report for 10 years. You will be looked at as a high credit risk and financially irresponsible.
Chapter 13 is less harmful to your credit. Though there are still marks against you, since you will be working to repay your debts on a payment plan, you do not look like you are financially irresponsible, though you are still considered a slight credit risk. Also, your qualifying assets will not be sold with the chapter 13 bankruptcy like they would in the chapter 7.
In 2005 an act passed legislation that now makes it more difficult for individuals to receive a chapter 7 bankruptcies. There are now terms to be followed such as pre-filing credit counseling and post-filing financial education.
So when considering your file for bankruptcy, it is important to weigh the sides between chapter 7 and chapter 13. Which one will do you more harm than good when it comes to solving your financial problems?
Sunday, August 31, 2008
Types of Bankruptcy
Subscribe to:
Post Comments (Atom)
1 comment:
Dear Admin
I came to know about your site from various social communities. I greatly enjoyed looking through your site and found some informative posts on finances as well as bankruptcy. I also have some mortgage and real estate related web sites and blogs having more information regarding various financial problems and its solutions. I think it might be of interest to your readers.
So, I think it would be beneficial for both of us if we will join in a community which will definitely help both of ours blog/site in getting more Google values. We would certainly appreciate your site. Please feel free to contact me with any questions at my email id.
We can also write articles for each others on any financial or real estate related topics. I have written articles for various sites and blogs.
Waiting for your earliest response.
Thanks and regards
Betty Parker
web admin
(contactbettyparker@gmail.com)
n.b: If you are not the concerned person, then kindly forward this mail to the webmaster concerned.
Post a Comment