Bankruptcy Vs Debt Settlement - Why is it so difficult to get approved for Chapter 7 bankruptcy
Failure had almost ruined the company and its creditors because of bankruptcy, many creditors always failed as a people were not reimbursed gains and relief from filing bankruptcy to Chapter 7 after Chapter 7, the payment of money by the debtor, If the judge accepts him to be totally bankrupt. Because of this rule, the creditor against the loss, and then by late provision of loans for any type ofDebtor. To continue in business, the creditor is not even a mortgage to borrowers who have communicated with good credit. If there are loans and bonds, the rate of economic growth began to slow down of America.
Government has taken note and made sure that some changes in the rules of bankruptcy. The first change made ion qualification criteria. Changes were made to eligibility criteria, after these changes the people who have the power to earn lessThe minimum wage, the state in which they live may be under Chapter 7 rows. Those who earn more than minimum wage are under Chapter 13 bankruptcy could exercise.
How To File Chapter 7 Bankruptcy
Another important change in the law that a debtor has to take advice before it filed for bankruptcy, so in this class advice, were informed about the disadvantages of bankruptcy and the consultant tries to discourage customersApplication. Then, a lawyer for the debtor to the whole process of bankruptcy is for rent.
According to the facts and figures, the assessment of filing bankruptcy under Chapter 13 three times lower than the rate of registration under section 7 people who have enough money to pay their debts have also begun to use files in order to escape the ' full amount of responsibility. Under Chapter 7 people earn less than the minimum wage over the last 6 monthscan not be under Chapter 7 rows. For example, if you earn $ 50,000 in the last 6 months and your state's minimum wage is $ 35,000, then it may file Chapter 7. not under Chapter 13, which restructured the loan repayment approach is relaxed and files, but not deducted or amortized amount of the loan.
There are other ways, such as liability settlement, which is supported byGovernment and the private sector and has more benefits to offer than insolvency.
Bankruptcy Vs Debt Settlement - Why is it so difficult to get approved for Chapter 7 bankruptcy