Bankruptcy Questions
Bankruptcy can be a scary and formidable event in our lives. First of all, we probably all hope we never have to go through with it so we try not to pay any attention to it. However, things happen in our lives and sometimes it is unavoidable. When that happens, many times we are unprepared to face the challenges and tasks that come along with it because we are uninformed abot bankruptcy information. This articles is dedicated to answering some of the most frequently asked bankruptcy questions.
1.What exactly is Bankruptcy?
Bankruptcy in its simplest form is a way for good people to get out of bad financial situations. Almost everyone qualifies for a certain kind of bankruptcy and has a legal right to file for it. You must file a petition which then will be presented to the court for them to either discharge your debts or determine that you still must settle with those creditors.
2. How do I go about filing for Bankruptcy?
This is a common bankruptcy question. First of all you need to decide if you want to go through a bankruptcy attorney or try and file the paperwork on your own. If you decide to go with a bankruptcy lawyer (which is always the safe way to go) he will probably require you to fill out a questionnaire to determine if bankruptcy is really the avenue you should take. Once that is decided then the attorney will help you decide what chapter of bankrupcy you should file for. You will probably have to schedule a few meetings with the lawyer to go over more questions about bankruptcy and provide important documents that the attorney may need. Once your bankruptcy petition is filed you will either meet with the Meeting of Creditors for a Chapter 7 filing, or with the Meeting of Creditors and Confirmation Hearing for a Chapter 11 or Chapter 13 filing. Plan on a few different appearances to get everything worked out.
3. What is a Chapter 13 bankruptcy?
A Chapter 13 bankruptcy is for residential homeowners. It allows married couples to either pay off a portion or all of their debts under supervision and protection. They can do this from the safety of their own home under the U.S. Bankruptcy Court. This type of bankruptcy is mostly used to pay off mortagages, while still making sure other debts to creditors are taken care of as well. Payments are usually spread out from three to five years. Chapter 13 bankruptcies are for people that have employment and incomes but have just become overwhelmed with bills, lawsuits, credit card debts, and other obligations.
3. What is a Chapter 7 Bankruptcy?
A Chapter 7 Bankruptcy will have a trustee appointed by the court to sell off all of your assets in an attempt to pay back some of the money owed. You then are exempt from your other debts, making you free of creditors that have hounded you for weeks and months previously. The only debts that you are still liable for would be child support, taxes, alimony, and student loans. These are not wiped away in a Chapter 7 Filing.
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