The Basics of Chapter 7 and Chapter 13 Personal Bankruptcy – bidti.org

ptcy. If you are facing this situation, the initial move is to call a law firm to explain bankruptcy and how it works. Although it is possible to file for bankruptcy with no attorney in most cases, you should consult with an experienced legal professional if you have to deal with complex financial or legal issues such as bankruptcy or IRS debt.

Prior to filing the application, you must visit a credit counseling agency that is recognized by The Department of Justice’s U.S. Trustee Program. Counselors are in charge of reviewing your financial situation, and explaining bankruptcy law’s definition. They will also discuss any possible alternatives to bankruptcy and help to create an appropriate budget plan.

The bankruptcy process for business debt is different from bankruptcy for personal debt and personal debt, there are generally two bankruptcy types that are available to you as an individual. These are chapter 13 and chapter 7. If you are in chapter 7, you’ll have to swap with your assets in order to settle your outstanding debts. There are some items you can keep such as your vehicle and personal belongings. Also, you will be able to maintain a certain amount of equity that you own in your home. Chapter 13 is available when you have a steady income. With this option, you must make a payment strategy for your debts and adhere to it. 25z97ubrn4.