what is the chapter 7 and chapter 13 bankruptcy?
A few years ago, it was very easy for an individual to get 5 or 10 credit cards and run up the limits and then claim bankruptcy for inability to pay them off.
And the individual would have a clean slate as far as not having to pay any of his creditors, but there would be a black mark on his credit report for at least 10 years.
Nowadays? Now if you try to go for bankruptcy, you would most likely be required to pay a portion of your debt to the creditors owed.
Chapter 7 is where a business or individual will lose certain assets to liquidation in order to pay some of the debt owed (of course there are stipulations on the assets that vary from state to state). Chapter 13 is a reorg. plan that basically lets you set a payment plan to repay debtors. There are limits to each chapter of bankruptcy though--those are outlined in detail by the government. -S
Bankruptcy is court process which is designed to help people and company to repay their money under the supervision of bankruptcy court and their law.Generally bankruptcy is 2 type Chapter 7 and Chapter 13 bankruptcy.
Bankruptcy is a legal proceeding in which a person can get a fresh financial start. Bankruptcy can be very useful and effective in resolving financial problems in certain cases.
It means going to the court and being discharged of all your debts, or setting up a payment plan. It also means you will be on the bad credit list for 10 years
It means going to the court and being discharged of all your debts, or setting up a payment plan. It also means you will be on the bad credit list for 10 years
I should also mention that in the USA, bankruptcy is a legal process that usually requires legal council and a judge.
Bankruptcy means when you go beyond the norms of banks and cheats to them..BUT never try it!!!
