How To Go Bankrupt
The question “how to go bankrupt” may be asked by many of us at one time or another. There are 2 ways an individual can become a bankrupt. The 1st and most common way is to have the person file a petition to willingly go bankrupt. The second, and infrequently used way, is for creditors to ask the Court to make an Order that a person is bankrupt. In all cases a Bankruptcy Trustee is needed to administer the bankruptcy. The 2 main types of bankruptcies available to people deal with different debt situations in other ways.
Chapter 7
The everyday Chapter seven debtor has few assets and considerable liabilities basically related to visa cards, store purchases, medical bills and other dischargeable obligations. Creditors are paid, if at all, from anything the debtor now owns that can’t be claimed as exempt. Dischargeable implies that by filing for bankruptcy you won’t have to pay the debt if the court grants the discharge.
Chapter 13
Chapter 13 bankruptcies are designed so you can at last repay some or all your debt but at better terms than you presently have. You debts are restructured, and you may use whatever means you have got to pay off your dues under the observation of the courts. You may have up to five years to do so, after which you can begin anew.
Heaps of folk file their own bankruptcies, and there are even some good online services for doing so. (Personally, I wouldn’t feel cosy doing one myself as there are lots of rules, and a lot of bureaucracy.)
The question “how to go bankrupt” may be asked by many of us at one time or another. There are 2 ways an individual can become a bankrupt. The 1st and most common way is to have the person file a petition to willingly go bankrupt. The second, and infrequently used way, is for creditors to ask the Court to make an Order that a person is bankrupt. In all cases a Bankruptcy Trustee is needed to administer the bankruptcy. The 2 main types of bankruptcies available to people deal with different debt situations in other ways.
Chapter 7
The everyday Chapter seven debtor has few assets and considerable liabilities basically related to visa cards, store purchases, medical bills and other dischargeable obligations. Creditors are paid, if at all, from anything the debtor now owns that can’t be claimed as exempt. Dischargeable implies that by filing for bankruptcy you won’t have to pay the debt if the court grants the discharge.
Chapter 13
Chapter 13 bankruptcies are designed so you can at last repay some or all your debt but at better terms than you presently have. You debts are restructured, and you may use whatever means you have got to pay off your dues under the observation of the courts. You may have up to five years to do so, after which you can begin anew.
Heaps of folk file their own bankruptcies, and there are even some good online services for doing so. (Personally, I wouldn’t feel cosy doing one myself as there are lots of rules, and a lot of bureaucracy.)
