Should I file for Chapter 7 or Chapter 13 bankruptcy?
Chapter 7, also known as direct bankruptcy or liquidation, is designed for individuals with minimal cash flow who are able to repay their debts through the sale of their assets. Chapter 13 is ideal for a person who, using their current income, can devise a reasonable repayment plan for their outstanding debts over the next three years.
Therefore, what do I require for my petition?
In 2005, modifications to bankruptcy laws made credit counseling mandatory for a successful filing, and you cannot file until you have completed the counseling program. If you are filing Chapter 7, you must include the following with your petition: the filing fees, Clerk's notice, attorney's payment statement, a list of creditors with secured and unsecured claims, a report of current financial matters, and an extremely detailed account of your possessions, property, obligations, and more. For Chapter 13, the above documents, excluding the Clerk's notice, apply, along with your proposed payment schedule.
Which debts are not dischargeable through consumer bankruptcy?
Not all of your debts may be eliminated by filing for bankruptcy. Common non-dischargeables include delinquent income taxes, child support payments or alimony/maintenance, education loans, any penalties or fines owed to the government as a result of illegal conduct, and any debt the debtor failed to identify on his or her list of creditors.
What occurs after the request has been registered?
Once your request is actually submitted, an automatic hold is enacted. This stops creditors from harassing you. You will be required to attend a 341 meeting, which is merely an information-gathering session with a trustee and your creditors. It is possible for a collector to file an objection to an obligation being discharged, but these conferences are typically brief and run effortlessly.
Is bankruptcy the only method to eliminate debt?
Although bankruptcy is a common option, it is by no means the only one. Other options include debt consolidation loans, credit counseling, and negotiations with creditors to extend the payment schedule.""
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