Bankruptcy

Bankruptcy is a legal process in which an individual or business that is not able to pay their debts to creditors seeks relief through the courts. The most common are Chapters 7 and 13. The “liquidation bankruptcy” is also known as chapter 7 which involves the sale of the debtor’s non-exempt assets in order to pay off as much of their debt as possible. After the sale of assets, any remaining debt is typically discharged, meaning that the debtor is no longer responsible for paying it. This type of bankruptcy is generally reserved for individuals with few assets and high levels of debt, such as credit card debt. Bankruptcy under Chapter 13 is a repayment strategy. Over a period of three to five years, you can pay off all or a portion of your debts. Any outstanding obligations are forgiven once the repayment plan is over. The repayment plan is based on the debtor’s income and expenses and must be approved by the bankruptcy court. Once the repayment plan has been completed, any remaining debt is typically discharged. This type of bankruptcy is generally reserved for individuals with a regular income who are unable to pay their debts, but who want to keep certain assets, such as their home.

Both Chapter 7 and Chapter 13 bankruptcies have their own eligibility requirements and can have long-lasting effects on an individual’s credit score and ability to obtain credit in the future. However, they can also provide much-needed relief for individuals and businesses struggling with debt. It is important to consult with a bankruptcy attorney to determine the best course of action. With that in mind, MineBook comes up with this Bankruptcy category where you will find lots of information regarding bankruptcy. So, keep on reading to learn the details about it.