When looking for cheap bankruptcy College Park, GA, residents should gather as much information about these legal options as possible. This will enlighten them about exactly what it is they are getting themselves into. There are numerous types of bankruptcies for different types of debtors. Continue reading to find out which one is suitable for you.
There are basically three types of bankruptcies. These are chapters 7, 11 and 13. The requirements for each of these chapters differ greatly. For this reason, debtors should always consult with attorneys and other financial experts before they file any of these chapters.
Individual debtors who have stable jobs can only qualify for chapter 13. This option entails reorganization of personal debt. After a person is declared bankrupt, he or she will be ordered to pay a certain amount of money every month for a given number of years to repay his or her debts. No assets will be repossessed by lenders. This is usually the best option for stopping foreclosure.
Chapter 11 is the business equivalent of the Chapter 13. Businesses and companies that have a stable source of income can apply for this chapter if they are unable to service their loans under the prevailing terms and conditions. In College Park, GA, it is commonly referred to as business debt reorganization.
The Chapter 7 is considered the default option. If a debtor, whether individual or corporate, fails to honor the terms stipulated under chapters 11 or 13, liquidation will take place under this chapter. This option is only considered or allowed when all the others have failed. Non-exempt assets are normally auctioned off to recover funds to settle the credit account of the debtor.
A trustee is normally appointed in all the different types of bankruptcies. This individual oversees the whole process from start to completion. A trustee is a neutral party who is mandated with ensuring that the law governing this debt settlement option is followed to the letter. This person represents neither the interests of the debtor nor creditors. He or she is only tasked with ensuring that creditors get what is due to them under the law.
Some people rush into bankruptcy without finding out what it entails. This is not recommended. Bankruptcy has some serious ramifications. In fact, it should only be sought if all the other options have failed to bear any fruit. For instance, debtors should first ask creditors to adjust the terms of their loans to make it easy for them to continue servicing it. If this fails, they can start the process of declaring their insolvency.
When looking for cheap bankruptcy College Park residents should not be in a hurry. This is because becoming bankrupt will lower their credit rating, thereby making it impossible for them to access affordable credit facilities in the future. Renting a house or leasing a vehicle may also be difficult after declaring bankruptcy. Other options should be explored first, and if all else fail, this option may be considered. A qualified attorney can help consumers to choose the right chapter, file the necessary paperwork and offer guidance throughout the process.
There are basically three types of bankruptcies. These are chapters 7, 11 and 13. The requirements for each of these chapters differ greatly. For this reason, debtors should always consult with attorneys and other financial experts before they file any of these chapters.
Individual debtors who have stable jobs can only qualify for chapter 13. This option entails reorganization of personal debt. After a person is declared bankrupt, he or she will be ordered to pay a certain amount of money every month for a given number of years to repay his or her debts. No assets will be repossessed by lenders. This is usually the best option for stopping foreclosure.
Chapter 11 is the business equivalent of the Chapter 13. Businesses and companies that have a stable source of income can apply for this chapter if they are unable to service their loans under the prevailing terms and conditions. In College Park, GA, it is commonly referred to as business debt reorganization.
The Chapter 7 is considered the default option. If a debtor, whether individual or corporate, fails to honor the terms stipulated under chapters 11 or 13, liquidation will take place under this chapter. This option is only considered or allowed when all the others have failed. Non-exempt assets are normally auctioned off to recover funds to settle the credit account of the debtor.
A trustee is normally appointed in all the different types of bankruptcies. This individual oversees the whole process from start to completion. A trustee is a neutral party who is mandated with ensuring that the law governing this debt settlement option is followed to the letter. This person represents neither the interests of the debtor nor creditors. He or she is only tasked with ensuring that creditors get what is due to them under the law.
Some people rush into bankruptcy without finding out what it entails. This is not recommended. Bankruptcy has some serious ramifications. In fact, it should only be sought if all the other options have failed to bear any fruit. For instance, debtors should first ask creditors to adjust the terms of their loans to make it easy for them to continue servicing it. If this fails, they can start the process of declaring their insolvency.
When looking for cheap bankruptcy College Park residents should not be in a hurry. This is because becoming bankrupt will lower their credit rating, thereby making it impossible for them to access affordable credit facilities in the future. Renting a house or leasing a vehicle may also be difficult after declaring bankruptcy. Other options should be explored first, and if all else fail, this option may be considered. A qualified attorney can help consumers to choose the right chapter, file the necessary paperwork and offer guidance throughout the process.
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