Bankruptcy and YOU
In the United States, there are two types of bankruptcy provisions for individuals: Chapter 7 and Chapter 13. Both fall under federal jurisdiction, which means these cases are filed in United States Bankruptcy Court, even though they generally are governed by state law.
Chapter 7 Bankruptcy
A straight bankruptcy or liquidation procedure in which a person is allowed to keep certain exempt property, however, some of your property will probably be sold/liquidated to pay down your debt.
What's the benefit?
- You retain most liens, such as real estate mortgages
- Security interests for car loans survive.
- Most if not all debt is erased.
Learn more about Chapter 7 Bankruptcy.
Chapter 13 Bankruptcy
A consumer reorganization or debt adjustment case in which a debtor (you)
proposes to pay creditors over a three- to five-year period. This written plan
details all transactions, and their durations, that will occur. Repayment must
begin within 30 to 45 days after the case has started. During this period,
creditors cannot attempt to collect on debt except through bankruptcy court. In
general, the individual keeps the property, and creditors end up with less money
than they are owed.
Learn more about the details concerning Chapter 13 Bankruptcy.
Bankruptcy isn’t always the best option to get out from under a massive debt load, so it’s wise to carefully weigh the pros and cons of bankruptcy before rushing into it.
Getting the advice of a bankruptcy specialist in usually your best option. Aurora Debt Services provides you with an easy form to help you get the expert advice you need on bankruptcy. Simply fill out the form and a bankruptcy professional will contact you for FREE, no obligation what so ever. You can also review more information on bankruptcy and other debt solution options.
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