Types Of Bankruptcy Situations
Moving into the twenty first century, many Americans aren’t sure of what to expect. Many businesses have begun to outsource labor to Mexico and India. With the loss of jobs comes unemployment to the employees. Most people caught up in a company’s decision to search for lower waged employees cannot find suitable jobs in the same geographic area in which they live.
They have worked at a job for many years and had higher wages. Finding new work with the higher wages is almost impossible. This can begin to have a financial impact on the family and having bill collector’s call only adds to the already stressed out situation. One option that people may decide on is choosing to file one of the types of bankruptcy. For the homeowner there are two different types of bankruptcy.
One is called chapter seven, and the other choice is called chapter thirteen. Chapter seven bankruptcies allows the debtor to erase all debts owed while letting people keep the house and cars if they desire. This can really take the burden of debt payments away which in turn takes away much of the stress that the people were under. The only payments that the people will have to pay are the payments on the house and any cars that the people may have kept.
Types of Bankruptcy Chapter Thirteen
As the first part of this article dealt with chapter seven bankruptcies, this section includes the other types of bankruptcy such as chapter thirteen bankruptcies. Filing for bankruptcy with chapter thirteen means that the people can keep almost everything that they want to.
The difference in this case is that people who file chapter thirteen bankruptcies tell their attorney what they want to keep and in turn, the attorney begins the task of talking to the creditors. Depending on the situation, this can take thirty days or even more. The people’s attorney will try to get the creditors to accept lower overall costs for each item. An example of this would be about the cost of a piano.
The people may owe the creditor five thousand dollars and the attorney will try to get the overall cost to three thousand dollars. This means that the people now only have to pay the three thousand dollars and not the original five thousand dollars. The people save two thousand dollars on the piano and the people can then begin to resume payments on the piano.
The monthly payment may drop as a result which saves people money every month. Consulting an attorney is the best course of action to aide an individual in determining the best type of bankruptcy to file for their situation.
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