Bankruptcy Information – Three Essential Facts That Anyone Should Know about Bankruptcy
Proper bankruptcy information may be difficult to find, because every case is different and very
complex, but learning more on the subject can always be useful.
Here is some helpful information about bankruptcy:
1. What is bankruptcy and what are the types of bankruptcy one can file for?
It is a legal procedure through which an individual declares himself or his company unable to pay his
debts.
There are five types of bankruptcy, each known by the number of the Federal Bankruptcy Act chapter
they are filed under:
•Chapter 7 offers a “fresh start” after all exceeding assets are liquidated and remaining debt is erased;
•Chapter 9 is available only to municipalities;
•Chapter 11 provides reorganization for companies;
•Chapter 12 gives debt relief to family farmers through a repayment plan;
•Chapter 13 filers get to keep all their assets but must repay their debt in 3-5 years.
2. What steps must be taken when filing?
Contact an attorney and settle an appointment; provide all the documents the lawyer needs;
Sign the bankruptcy petition;
Attend the 341 meeting; complete the financial management course and give the certificate to your
attorney;
Receive your bankruptcy discharge.
3. How often can one file for bankruptcy?
It depends: Chapter 7 can be filed only 8 years after a former Chapter 7 bankruptcy and six years after
a Chapter 13, while a Chapter 13 bankruptcy can be filed at least four years after a prior Chapter 7 and two
after a Chapter 13.
And last, but not least, the most important bankruptcy information you need to keep in mind: never be
embarrassed to ask for help!
Posted by admin on January 23rd, 2012 :: Filed under lawyer