Chapter 7 is one of these, and is also known as straight bankruptcy. By choosing this bankruptcy option you will be liquidating all non-exempt property or assets and handing them over to the courts bankruptcy trustee, who will in turn transform these in cash. The trustee will then pay off your dues with the earnings and deplete your debts. By choosing this option a debtor has a better chance of turning over a new leaf, for he or she can pay off or reduce debts with existing assets.
If you do not know the difference between the various bankruptcy options, you can seek more detailed information from a bankruptcy attorney or financial debt relief company, they will help you choose the easier option according to your particular case.
Chapter 13 is specifically for those who have a monthly income and do not have available property or assets, as is the case for private individuals as opposed to companies. They will thus be using their income to pay off their creditors within a predetermined period of time.
Nowadays more and more people are filing for bankruptcy and often make hasty decisions without seeking financial information or advice. The more you learn about bankruptcy the less likely you are to end up with a permanent record on your credit report, that can last up to ten years.
Bankruptcy is now widely used and this trend has taken alarming amplitude. There are many bankruptcy law firms as well as credit counselling service popping up everywhere, which goes to show how widespread filing for bankruptcy has become. Bankruptcy can often be avoided, and you should not follow the wake of indiscriminate bankruptcy filing, for with a proper financial service or bankruptcy attorney, you can draw out a plan to circumvent your financial problems and debts.
With the proper bankruptcy information available you can make informed decisions with regards to debts you cannot pay off, and this will help you find a strategic financial plan to pay off all debts effectively without having to file for bankruptcy.
A bankruptcy attorney or financial counselling firm can help you be aware of the different bankruptcy possibilities and learn to discern the categories including the Chapters 7, 11, 12 and 13.
Nobody wants to opt for bankruptcy, but should it be unavoidable, it is important you get appropriate counselling from a bankruptcy attorney before you do take any decisive steps.