Knowing which kind of case of bankruptcy is suitable for your needs is part of the method. So, what exactly is bankruptcy proceeding? Personal bankruptcy was a proceeding in a federal court by which an insolvent debtor’s assets is liquidated in addition to debtor was alleviated of further liability. There have been two forms of personal bankruptcy. Part 7 deals with liquidation, while Chapter 13 case of bankruptcy deals with the reorganization.
Exactly what are the Forms Of Bankruptcy Proceeding?
Part 7 Personal Bankruptcy
This is when the court appoints a trustee whom may liquidate or offer a few things that you own to cover creditors. Much of your personal debt will be canceled. However you may choose to spend some lenders, generally keeping a vehicle or home wherein the creditor have a lien.
Chapter 13 Bankruptcy
This is how your debt is reorganized into a single monthly payment. The installment will continue for 36 to 60 period. In no case may a strategy offer payments over a length longer than 5 years. You do not have to settle your entire debt. Read more