Bankruptcy is a legal process that reduces debt and gives you a chance to reorganize your debts. According to Brain Linnekens by filing bankruptcy, you can easily overcome your bad financial situation. You can pay back your debt within 7-10 years with repayment plans. Bankruptcy has several types of chapters but in most cases, people file chapter 7 & 13 because these chapters are effective and easy to file.
When Chapter 7 Bankruptcy can be an option explains Brian Linnekens
Chapter 7 is very helpful for debtors who are not able to pay back their debt. It is very useful in those cases where majority of the debt is unsecured because in chapter 7 bankruptcy some of your property is sold to recover the debt one has incurred from creditors and in return your unsecured debt will be written off. Remember everyone does not file chapter 7 bankruptcy. In cases where the disposable income is enough to file a chapter 13-repayment plan after subtracting certain allowed expenses and monthly payments for certain debts you would not be allowed to use chapter 7 bankruptcy.
Chapter 9 Bankruptcy as explained by Brian Linnekens
Chapter 9 bankruptcy is designed for “municipalities.” The main purpose of chapter 9 is to safeguard a municipality from its creditors while it negotiates its debts. According to chapter 9 bankruptcy a creditor cannot take over the assets of the municipality from the municipality. Only a municipality can file for relief under chapter 9.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is very complicated and it used for those peoples who are struggling with their business and want to reorganize their finances. It is generally used only by those whose debts exceed chapter 13. In this process debtors continuously work and maintain owner ship of all assets and try to fulfill to pay off creditors. Chapter 11 is more expensive. Before filing chapter 11 you will need to talk to a bankruptcy lawyer like Brian Linnekens who will be able advice you professionally based on his experience and years of learning in the realm of Bankruptcy.
Chapter 12 Bankruptcy
Very few people use chapter 12 bankruptcies. It is specifically for farm owners. According this chapter the debtor maintains ownership of his assets and works out a repayment plan with the creditors. Similar to chapter 13, filing under chapter 12 bankruptcy you can pay back your debt within three to five years.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is one of the most beneficial options for those people who are struggling with their debts. It is best for those debtors who are behind on secured debts such as home mortgages and car loans. Chapter 13 bankruptcy gives you a chance to keep all your assets and you can stop foreclosure with the repayment plan agreed upon in the Bankruptcy terms and conditions. According to the repayment plan, you can pay back your debt within three to five years. The time of three to five years can be increased by the bankruptcy process if you are not able to pay off your debt within three to five years. Since paying off the debt within a particular time period will depend on your present income. Chapter 13 will help you to reorganize and reduce your debt. It will also gives you a chance to create new plans to pay off your debts and gives you more time to fulfill your financial obligations.
Bankruptcy has provided us many options. If you are thinking of filing bankruptcy then you need to understand the various bankruptcy options and know which one is suitable for you. Before filing bankruptcy, you can talk to a bankruptcy lawyer since bankruptcy law is very complicated and with the help of an attorney you can easily know the difference between the various bankruptcy chapters. Filing for bankruptcy should be the last option. Before filing for bankruptcy you should check for other options like loan modification or loan settlement whichever is possible for you.