It is an ideal thing to keep the money that one has earned. A qualified bankruptcy attorney can turn whatever financial woes you have into something encouraging instead of something that pulls us down. Although it has a negative connotation, filing for bankruptcy is actually very helpful to those who need it most. The intention of the filing of bankruptcy is actually to provide relief to those who are deep in debt.
What are the different bankruptcy filings available for you?
In Chapter 7 bankruptcy filing, the properties of the debtor are sold in order for him to be able to pay all his debts completely, and thus completely wiping out his debts. Here, creditors cannot legally contact you to make collections.
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IN Chapter 13 bankruptcy filing, you debts are paid using new income, and all or part of your debts are planned to be paid. Chapter 13 bankruptcy includes the debtor proposing a repayment plan to his creditor in which he pays all or part of his debts in a period of three to five years. The payment you make is calculated by how much money you have available and how much your owe.
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Chapter 11 and 12 bankruptcy filings are used by businesses and this allows them to continue their operation without any harm to their business. A proposed plan of reorganization is given by the debtor to keep its business alive and pay their creditors over time. Chapter 12 is for farmers or commercial fishermen, allowing them to make payment on the season when it is more advantageous.
It may be difficult for you to eliminate student loans and tax debt. This is difficult because you are required by court to prove undue hardship and this is done by showing that if you are forced to pay your student loans or tax debt, then you will be unable to maintain even the lowest standard of living. An example of undue hardship is if you become disabled.
You cannot just claim bankruptcy anytime. This is a court proceeding where you file a petition before a judge. You need a bankruptcy attorney for his complicated process so that the best possible outcomes are ensured. The fear of many people is that filing for bankruptcy destroys your credit score. But, an attorney will tell you that the bankruptcy will remain on your credit report for ten years but it will help you start rebuilding your credit immediately. Your house can also be kept with the help of a bankruptcy attorney. These are all federal regulations, so if there are cases brought to court, it has to be to the federal courts and not the state courts. Hiring a professional bankruptcy attorney can help you interpret laws in your state in order to protect your home and financial future.