Bankruptcy :: essays research papers

Chapter 7 Bankruptcy vs. Chapter 13 BankruptcyChapter 7 and Chapter 13 bankruptcies are full of advantages and disadvantages. But at the same season they are very different. Without knowing these differences a person could lose many things from currency to possessions. Chapter 7 bankruptcy can wipe out most of ones debts besides certainly not all of them. Certain kinds of debt are not cover by the terms of Chapter 7. Some examples of debts that must be paid after(prenominal) filing for bankruptcy would include child support, sustentation, income taxes and penalties, student loans, and court staged damages due to unfair and unrightous acts. Bankruptcy courts handle your financial problems until the strip ends. A court assumes control of all ones debts that are owed and all place that is not salvageed. A person, legal guardian, is appointed to be in charge of your debt. The trustee collects home that can be taken and sells it to re be around creditors. That property can be surrendered to the trustee, one may pay the market order of it or one also may choose to trade exempt property with nonexempt property. A small number of people genuinely lose property when filing bankruptcy. If a person changes their mind some filing for bankruptcy they may ask the court to dismiss the case. At the end of the process the court would discharge most of the debts and one is unable to file for Chapter 7 bankruptcy again for at least another(prenominal) six years.Chapter 13 bankruptcy us mostly used to substantiate up any type of debt payments and pay things off and in some cases it can be used to stop a foreclosure on a house. Chapter 13 bankruptcy cases usually last up to 5 years. During that time one would have to live under a strict cipher that would require discipline. Most debtors that file for chapter 13 bankruptcy never pay back all their creditors all that they owe. That can ruin your credit because it corset on file for at least 10 years. Money caution seminars are available to those that have paid 75% or more(prenominal) of their debt. Chapter 13 bankruptcy allows creditors to get at least some of their property back. Debtors keep all of their property and would out a compulsory, court-enforced plan to avenge a portion of their debts over a certain period of time. With Chapter 13 bankruptcy some debts may be discharged but alimony and child support continue to be an obligation that must be fulfilled.