Need a repayment plan for Chapter 7 bankruptcy?
When most people think of the word failure, they think that a consumer or a business run out of money and took a step in Federal Bankruptcy Court of all the debt relief. This is the type of bankruptcy that most people think, but many consumers are confused by the different names, as discussed in Chapter 7, Chapter 13, Chapter 11. What does this mean and what these plans require a repayment plan?
> Chapter 7 bankruptcy does not require any type of repayment plan. Why? Well, Chapter 7 bankruptcy, which most people think. This is also known as straight bankruptcy, because you're trying to get rid of your debts are fully repaid with nothing. It 'also called liquidation, because you are forced to sell some assets to repay its debt as possible.
How To File Chapter 7 Bankruptcy
In practice, butMost people do not have much in terms of assets. In fact, constitute about 95% of all bankruptcy cases no assets. This means that people are not presenting anything that is not free, or that have simply not worth it later.
What types of property are off-limits to creditors? Now, your home is generally exempt, but specifications vary depending on the state you live in, for example, a state like Texas offers unlimited free farm, which meansthat creditors can not go home, no matter what it's worth it. It is not necessary, of course, you have to pay a mortgage, however.
Just to clarify, Chapter 13 is a type of bankruptcy where you make a repayment plan for the next three to five years. If you're wondering what these other chapters can be found, usually go only to companies or special circumstances, such as a farmer or fisherman in the event of failure.
Need a repayment plan for Chapter 7 bankruptcy?