Filing Personal Bankruptcy Help

One never knows what’s around the corner, particularly when it comes to world events, which can have a long reach and affect many people.

All of us like to feel secure, and look to our leaders to provide the right conditions to acheive that security, but in reality their options are limited in the modern world. in addition, much of what goes onis beyond the reach of politicians, as many of us have learnt, to our cost, in recent years.

These recent economic catastrophes have meant that more and more businesses and individuals have been forced onto bankruptcy in recent years. This has led to an increase in those seeking information about to how to go about claiming bankruptcy and which chapter to file under.

Chapter 13 is what is known as a repayment plan. On filing chapter 13 the court examines all outstanding debt and the income of the individual (this has often already been done if the individual failed the chapter 7 means test). The court then works out a repayment plan, which involves creditors being repaid over a 3-5 year period.

Chapter 7 was abused in years past, with people hiding their income and assets and using chapter 7 simply as ameans of removing debt that they could, in fact, afford to repay. The means test now makes it very hard for people to conceal their wealth, and many are forced into chapter 13 ensuring that where debt can be paid, it is indeed paid, though the repayment terms can be pretty tough and leave very little cash left over on a monthly basis.

Chapter 13 can be advantageous however. For example, if a business or an individual has fallen behind on payments due to short term cash flow problems, chapter 13 gives them the opportunity to catch up. In addition, unlike chapter 7, no property is sold, so particularly in the case of a business, keeping the assets intact means that the business can operate as normal.

Once chapter 13 is filed, no one who is owed money can press for forclosure. If a business for example, owes money on capital equipment, this means that they can keep it, subject to the repayments included in the repayment plan being met. The outcome is that the business can therefore continue to do business with no loss of key assets, and the creditors will eventually get paid in full, rather than potentially lose money in a chapter 7 liquidation case.

The alternative chapter 7 bankruptcy, whilst the most popular form of bankruptcy for individuals, is less welcome for many businesses. This is because chapter 7 is an enforced sale of assets, which often results only in partial repayment to the creditors and destroys the business, everyone loses. Chapter 13 can be a lifesaver for both the business and the creditors.

Filing bankruptcy must not be entered in to lightly and can be a traumatic experience. If you would like additional free information regarding declaring yourself bankrupt, visit this free website declaring yourself bankruptwww.declaringyourselfbankrupt.net.

Related posts:

1. Some Facts Regarding Chapter 13 Bankruptcy
2. What Is Chapter 11 Bankruptcy?
3. Your Business, Chapter 7 And You
4. Chapter 7 Bankruptcy
5. Chapter 13 Bankruptcy
6. Certain Conditions Must Be Met To File Chapter 13 Bankruptcy
7. Bankruptcy – Chapter 7 Alternatives
8. How To File Chapter 7 Bankruptcy – Understanding The Process
9. Chapter Seven Bankruptcy Laws Post 2005
10. The Means Test For Chapter 7