In America bankruptcy is a legal term used in case an individual
or organization shows inability or impairment to pay their
creditors. The bankrupt can still apply for bankruptcy loan
to recoup his/her collateral.
There are two types of proceedings in bankruptcy i.e. chapter
7 and chapter 13 existed in America.
Chapter 7 Bankruptcy!
Chapter 7 Bankruptcy is also known as a straight bankruptcy
in which debtor hand over all non-exempt property to the bankruptcy
trustee who then converts it to cash for distribution to the
creditors. Within four months from the declaration of bankruptcy
the debtor receives a discharge of all dischargeable debts.
As in most of the cases the debtor loses all his/her assets
so chapter 7 is a process by which he/she can save something
for a fresh start to wipe out his/her debts. Bankruptcy law
can become helpful to both debtors and the creditors.
Chapter 13 Bankruptcy!
Chapter 13 Bankruptcy is the reorganization bankruptcy for
the Americans. It is a process for them who want to payoff
their debts over a period of three to five years. This process
can help them who have non-exempt property and want to keep
with them for all time. It is also only an option for individuals
who have definite possibilities of earning and the earning
will sufficient to meet their expenses besides some amount
will be left over to pay off their debts.
Those individuals who can afford to make repayment of their
debts in near future should file chapter 13.
Do you know Chapter 7 Bankruptcy is much easier to file than Chapter 13 Bankruptcy!!
Are you afraid of your creditors?
In bankruptcy
case once you file any lawsuit for bankruptcy, the creditors
will not be allowed to call you or to follow any medium demanding
payments.
Are you worried for your spouse to be blamed with
you in bankruptcy?
It is just not possible unless your husband or wife would
have signed in an agreement or contract.
Are you afraid of going public that you have declared
bankrupt?
In normal circumstances the record of bankruptcy remain keep
in the record and it will be recorded on your credit record
for 10 years.
When should you file for a chapter 7 bankruptcy?
If you are unemployed and have large expenses such as medical,
and other unexpected expenses then you can apply for chapter
7 bankruptcy. If you have over extended credit and can not
afford to repay. Marital problems and some unexpected expenses
you could have never assumed encourage you to file a chapter
7 bankruptcy form.
Credit card allows to a bankrupt!!
It depends on the credit card company whether they cancel
or allow you to use a credit card after filing bankruptcy.
In most of the cases credit card company cancel the card even
if you have a zero balance in your card.
Is there any fear of dismissing from the job if
filing bankruptcy?
As per the U.S.C. Sec 525, no employer can dismiss you from
the job if you filed bankruptcy.
Can a bankrupt receive credit latter?
You can receive a certain amount against a guarantee of repayment.
There are banks and creditors in America for providing credit
to a bankrupt take equal value of a collateral against the
amount of credit. Two years after a bankruptcy discharge,
debtors can apply for mortgage loans like good credit holders.
Bankruptcy | American Bankruptcy Law | Personal Bankruptcy | Chapter 7 Bankruptcy | Chapter 13 Bankruptcy | Personal Loan After Bankruptcy
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