Bankruptcy options can be a great choice for individuals and businesses that need financial help. When you borrow money from banks it can simply wipe your slate clean and help you be eligible to start over. There are two reasons for this:
o Discharging debt so that nobody is officially liable for the repayment
o Setting up a realistic payment plan that is under the discretion and supervision of the bank
Of course, bankruptcy should always be the last choice of someone who cannot take care of their financial responsibilities. You must always consider your bankruptcy options and compare them with all of your future financing.
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Most negative items will stay on your credit report for seven years, but, bankruptcy will be shown on your report for ten. This can make it a lot more difficult to borrow loans or credit in future.
If this is the only option for you, then it is best to sit down with a bankruptcy professional and go over every bankruptcy option there is for your situation. There are two main types of bankruptcy, and they are:
1. Liquidation: This results in the payer not being responsible for the repayment of the certain debt, or more properly known as discharging the debt. The property of the 'filer' is sold so that the earnings can go toward the payment of his or her unsecured debts.
2. Reorganization: This allows an individual to rid their debt by setting up a specific payment plan under a judge's supervision. Of course, this kind of payment plan is court ordered. Any debts that are left unpaid are typically discharged. For the most part, the court system will understand your financial situation and help you if they can, but do not expect your payment plan to be just what you can afford. Most of the time, you will be able to afford it, but it will just be a little more than you hoped for.
There are currently four types of bankruptcy options that revolve around the filing of the claim.
1. Chapter 7: Liquidation for businesses and individuals
2. Chapter 13: Reorganization for particular individuals
3. Chapter 11: Reorganization for businesses and individuals
4. Chapter 12: Reorganization that may be reserved for individuals that may be in the fishing or farming business
All bankruptcy options will affect you all in the same way no matter which one you choose. It is normally great for credit card debts, but some debts may be obligatory, which means that the certain debt cannot be discharged. Examples of debts that cannot be discharged are student loans, tax and federal debts, child support and spousal support.
If most of your debts seem to be the latter, then it is in your best interest to look for other choices rather than bankruptcy options. Filing bankruptcy should always be the last resort, but sometimes people are in such a financial bind that this is the only option left to choose. For instance, you can always check out debt consolidation companies and debt repair. Just remember that if bankruptcy ends up being your choice, seek professional help.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
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