Chapter 7 bankruptcy is also known as straight bankruptcy and is a process of liquidation in which the debtor turns over all non-exempt property to the trustee of the bankruptcy proceedings. The trustee will, in turn, convert it to cash and distribute the proceeds to creditors.
Within four months or so, the debtor will receive a discharge of all dischargeable debts. According to bankruptcy information, most of the Chapter 7 bankruptcy cases help in giving the debtor a relatively quick “fresh start” because he or she would not have any assets that could be lost.
Different Types of Bankruptcies
Knowing the differences between Chapter 7 and Chapter 13 bankruptcies highlights the need for adequate bankruptcy information to be readily available. Being distinct from Chapter 7 bankruptcy, Chapter 13 bankruptcy is provided for those that earn wages and who can thus use their income to pay off creditors within a stipulated time period. It is only if there is enough bankruptcy information available, that one can learn about the different forms of bankruptcy, learn how best to avoid them, and in case of bankruptcy, know how best to deal with them.
With proper bankruptcy information in hand, one can know that it is a law that is available for those who are unable to pay off their debts which can be utilized to provide a means of paying off their creditors. With no more debtors’ prisons, one no longer needs to have to worry about spending time behind bars due to inability to pay off debts.
As more banking information becomes available, one will realize that now record numbers of people are filing for bankruptcy each and every year, and armed with such bankruptcy information, one can learn to avoid bankruptcy; since filing for bankruptcy will leave a permanent record on a person’s credit report for ten years.
With adequate bankruptcy information, one can even make informed decisions regarding debts which may have gone out of control. By educating oneself through study of bankruptcy information, one can learn about the different categories and the consequences of each type. The different categories include Chapter 7, 11, 12, and 13.
Bankruptcy is indeed a dreaded word that, in today’s fast-paced as well as materialistic society, is finding much wider usage which is a reason for alarm. Through bankruptcy information, one learns that bankruptcy law firms, credit counseling services as well as even do-it-yourself bankruptcy kits are all being widely advertised everywhere, which only shows the seriousness of such a circumstance, and how best to deal with it.
No doubt, bankruptcy is very unwanted. But in case it does become a reality, one should get all the pertinent bankruptcy information and consult a good credit counseling service prior to pursuing this dreaded course of action.