Posts Tagged ‘Bankruptcy Chapters 7 11 13’
July 23rd, 2010 | 
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Following are the three main bankruptcy chapters:
Bankruptcy Chapter 7 – It is also known as liquidation bankruptcy. This insolvency can eliminate all debts but court can force you to liquidate some of your assets to pay off the outstanding balance of creditors. It will cost you about £500 including the expenses of paper work and fees of attorney. Attorney is a professional who takes care of your bankruptcy case. It is always advisable to inform everything to attorney including your financial situation. If your case is not strong enough, they would let you know already and can save your money.
Bankruptcy Chapter 13 – This option is good for those people who do not want to liquidate their assets. It is reorganization plan for debtors who want to repay the debt over a period of 3-5 years. Courts check the monthly income of individual and reduce the debt accordingly. One monthly installment is decided by the court which debtor has to pay every month to creditors.
Bankruptcy chapter 11 – This bankruptcy is not very popular and contains the success rate only 10%. It is used by companies or organization. In this bankruptcy, debtor has to get approved the bankruptcy from creditors, if they do not approve it, they can force it through court.
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