In the United States, there are two options of bankruptcy called Chapter 7 and Chapter 13. Chapter 7 can remove all or part of your debts once your liquid assets (those that are easily converted into cash) are used to pay part of the debt. Chapter 13, on the other hand, can pay all or part of the debt through a payment plan over a period of 3-5 years. This plan must be submitted to the court during bankruptcy proceedings, and must be approved by the presiding judge. Once you have completed the plan’s payments, any outstanding balance would be removed. Note that Chapter 7 requires you to give up your liquid assets, but if you want to keep them, then the option offered by the Chapter 13 you would more convenient. For more Bankruptcy Help, keep reading.
An automatic stay is a temporary postponement of the collection of debts. According to experts, an automatic stay prevents lenders from immediately confiscating your property such as a home or car. Bankruptcy is not a magic bullet that will solve your debt problems, and may not be the best option for your situation, so it is best to consider alternatives such as:
1. Reaching a settlement with creditors
2. Negotiating a reduction of payments to creditors
3. Seek help through an approved credit counseling agency
4. Sell property to pay the debt off
5. Get a loan using your property as collateral to pay off debt
Since 2010, the number of people who have filed for personal bankruptcy (also known as Chapter 7) increased by about 500 percent since 1980, according to the American Bankruptcy Institute. Nearly 1.5 million people filed for personal bankruptcy in 2009. Part of the reason for this is because bankruptcy offers some tremendous advantages over holding on to the debt, which have become more evident in recent decades due to economic changes. Bankruptcy is not the best solution for all, which is why you need to consider the costs and consequences. And if you do decide that this is the best option for you, the first step is to consult a lawyer or Chicago Debt Solutions because of the complexity of various bankruptcy laws. You can follow them on Google+.
