Help Provided By Bankruptcy Courts In Dealing With Financial Crisis
A debt crisis can be overly challenging if not dealt with in an efficient manner. There are various debt solutions available for people to overcome financial difficulties. However, every solution has their own set of pros and cons that can be best explained by an expert legal advisor. Bankruptcy is one of the most common debt solutions opted by people to emerge efficiently out of a debt crisis. It is however extremely important to consult an experienced attorney to know the advantages as well as complexities involved in bankruptcy to determine if it is an appropriate option for you.
The term bankruptcy for most people bears a great deal of negativism. It is an intimidating situation that is avoided by people in most cases even if they are facing an outrageous debt burden. However, in some cases, bankruptcy can actually be helpful in dealing with monetary problems if used in the right way and at the right time. The various laws made by bankruptcy courts can help people deal efficiently with a debt situation. Let us discuss some of the basic facts related to bankruptcy that can help you decide if it can be helpful to you:
Bankruptcy is mainly divided into three types. Chapter 7 bankruptcy, chapter 13 bankruptcy and chapter 11 bankruptcy. Chapter 7 and chapter 13 bankruptcies are personal bankruptcies that can be availed only by individuals and not by organizations or companies. Individuals having non-exempt assets to hand over to the court in order to make debt payments can opt for chapter 7 bankruptcy. These non-exempt assets are liquidated by the court for making payments to the creditors.
Chapter 13 bankruptcy is suitable for individuals making a reasonable earning while being under severe debt burden. In this case, the court provides the debtors with a repayment plan where they are allowed to make debt payments according to their conveniences and over a fixed time period. The payment amount is determined on the basis of the debtors monthly income and personal expenditures.
Chapter 11 bankruptcy is to allow business owners to continue with their business even after filing for bankruptcy.
Bankruptcy can be immensely helpful in dealing with the stress and embarrassment caused to you due to the collection attempts made by the creditors. If your creditors are bothering you with constant phone calls, messages and threats, bankruptcy filing can efficiently help you get rid of all the harassments. Once the court accepts your petition for bankruptcy, your creditors immediately become legally obliged to stop all kinds of contacts with you. Henceforth, all communications take place between your creditors and the bankruptcy court.
There are no restrictions made by the court on bankruptcy filing more than once. You are actually allowed to file for bankruptcy as many times as required by your financial condition. However, in some forms of bankruptcy you cannot make to successive filings before the lapse of a particular time period.
Bankruptcy can efficiently help you in dealing with the immense stress of a foreclosure. An automatic stay that gets activated with bankruptcy filing is an excellent way to put a foreclosure on hold either permanently or for a particular time period. Even if it fails to stop the foreclosure permanently, it can at least hold it for a definite period of time, thereby allowing you to arrange for money and save your property.
The term bankruptcy for most people bears a great deal of negativism. It is an intimidating situation that is avoided by people in most cases even if they are facing an outrageous debt burden. However, in some cases, bankruptcy can actually be helpful in dealing with monetary problems if used in the right way and at the right time. The various laws made by bankruptcy courts can help people deal efficiently with a debt situation. Let us discuss some of the basic facts related to bankruptcy that can help you decide if it can be helpful to you:
Bankruptcy is mainly divided into three types. Chapter 7 bankruptcy, chapter 13 bankruptcy and chapter 11 bankruptcy. Chapter 7 and chapter 13 bankruptcies are personal bankruptcies that can be availed only by individuals and not by organizations or companies. Individuals having non-exempt assets to hand over to the court in order to make debt payments can opt for chapter 7 bankruptcy. These non-exempt assets are liquidated by the court for making payments to the creditors.
Chapter 13 bankruptcy is suitable for individuals making a reasonable earning while being under severe debt burden. In this case, the court provides the debtors with a repayment plan where they are allowed to make debt payments according to their conveniences and over a fixed time period. The payment amount is determined on the basis of the debtors monthly income and personal expenditures.
Chapter 11 bankruptcy is to allow business owners to continue with their business even after filing for bankruptcy.
Bankruptcy can be immensely helpful in dealing with the stress and embarrassment caused to you due to the collection attempts made by the creditors. If your creditors are bothering you with constant phone calls, messages and threats, bankruptcy filing can efficiently help you get rid of all the harassments. Once the court accepts your petition for bankruptcy, your creditors immediately become legally obliged to stop all kinds of contacts with you. Henceforth, all communications take place between your creditors and the bankruptcy court.
There are no restrictions made by the court on bankruptcy filing more than once. You are actually allowed to file for bankruptcy as many times as required by your financial condition. However, in some forms of bankruptcy you cannot make to successive filings before the lapse of a particular time period.
Bankruptcy can efficiently help you in dealing with the immense stress of a foreclosure. An automatic stay that gets activated with bankruptcy filing is an excellent way to put a foreclosure on hold either permanently or for a particular time period. Even if it fails to stop the foreclosure permanently, it can at least hold it for a definite period of time, thereby allowing you to arrange for money and save your property.
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