Reference - Available Bankruptcy
Options
The laws regarding bankruptcy have changed recently, but there are
still options available to you if your debt has grown out of control and
you have found yourself unable to repay them. Bankruptcy laws give
debtors a way to divide their assets among creditors and completely
eliminate some debts after the assets have been distributed.
Due to the recent changes, you may have to undergo credit counseling
prior to filing bankruptcy, but as a debtor you are entitled to file
bankruptcy as a way to reorganize or eliminate your debts.
People wanting to completely eliminate all outstanding debts
generally use Chapter 7 bankruptcies. Business can also file Chapter 7
if they plan to liquidate all assets and close permanently. Under a
Chapter 7 bankruptcy, an individual may keep certain property such as a
home, automobile, tools of trade, and various other properties.
Some property however, may be lost during the bankruptcy proceedings.
A trustee will control the debtor's assets during the bankruptcy process
and those assets will be divided among creditors as the trustee sees
fit. Upon discharge of the bankruptcy, the control of any remaining
property is returned to the debtor and all outstanding debts that have
not been reaffirmed will be gone.
Chapter 13 bankruptcy is for those who wish to pay all their
outstanding debts but have found themselves unable to do so. Chapter 13
allows individuals to reorganize debts and structure payments
differently so that the debtor can afford to make payments over time.
In the case of a business wanting to reorganize, Chapter 11
bankruptcy is the appropriate choice. Filing bankruptcy is a way out of
debt for many people and businesses. Consult with a professional to make
sure that bankruptcy would be the best choice for you before you make
any final decisions.
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