Learning About Bankruptcy Laws
Chapter 7 You do not need to be an expert in law to know that several thousand United States citizens are forced to declare bankruptcy every single year. Because this is such a frequent occurrence and so many of our family members and neighbors go through this difficult time during their lifetime, it is important that we all obtain a better understanding of bankruptcy law in general. Knowing more about law is the responsibility of every occupant of this nation, and even more so when it comes to the subject of bankruptcy law. Having familiarity with American law will only benefit you in the end. Below, we have listed some of the most commonly used instances of bankruptcy law and explanations of how each law is used by citizens.
1. Chapter 7 – This instance of bankruptcy law is filed by individuals that would like their debt to be erased completely. There are certain stipulations to filing a Chapter 7 though. The law says that you will not be able to keep your house or your car if you are behind on the payments. If you are up to date however, bankruptcy law says that you are able to keep these types of possessions and they will not be put toward your debt. See, the law can be very helpful and friendly!
2. Chapter 13 – Thirteen is another form of bankruptcy law, except in this case you are allowed more time to repay your debts. This is normally used by people that are behind on their car or house payments. When they file a Chapter 13, the law says that their possessions can’t be repossessed. This bankruptcy law states that the standard time allowed for repayment is usually five years, although exceptions are known to be made to the law.
3. Chapter 11 – The way that this bankruptcy law works is very similar to filing a Chapter 13. For this law, you are allowed more time for repaying your debt, but Chapter 11 is only used for people with larger amounts of debt. Eleven is filed by people that have over $200,000 in unsecured debt or $800,000 of secured debt. Otherwise, there is no difference between filing a Chapter 11 and a Chapter 13.
These are the most common types of bankruptcy law that are used by citizens that are having financial troubles. Having a bankruptcy lawyer on your side can be very helpful if you need to understand more about your plight and law in general. If you are in need of an attorney for this purpose, use the web to your advantage. There are several informative sites out there that can provide you with the information you need. Online forums, attorney rating websites, and directories will all help you find out more about the laws you are dealing with, as well as the professionals that are available to you. Be sure to put the proper amount of effort needed.