Types Of Bankruptcy – What’s Needed?

Apr 29th, 2014 | By | Category: Guide

Do you want to enjoy the internet while filing for your bankruptcy? Then you can file for bankruptcy online which is faster, more convenient and gives you more online site to choose from. The advantage of filing online than filing the physical, traditional way is that if ever there was any mistake or mistakes in the forms, the site can notify you right away through your email. If that happens to a physical form or if it gets lost, too, this can take much time and you’ve got to go back and forth just to check on the process of your physical forms.

But looking at all the site and PDF forms can become a hard thing to look at first glimpse. If this is your first time to file bankruptcy, I suggest you get a little reading about bankruptcy, laws, its process, and the kind of which you can claim for. Bankruptcy is a legal action that you can follow to stop your creditors from harassing you or in other words eliminate your debts. There are two types of bankruptcy that you can either apply for. The first type of bankruptcy you can claim is chapter 7. This is the more popular type of bankruptcy because of how it resolves your debts. This type of bankruptcy will liquidate all your properties, except for properties that you can keep known as exempt properties. These are set out in the bankruptcy law. The liquidated properties will generate proceeds that will be made available at the creditors. Sometimes or a majority of the times, the amount of funds generated wouldn’t be in a position to cover all the debts; those debts that are left uncovered will be forgiven or be discharged. In order to be eligible for this type of bankruptcy, one must pass a means test which will show that a person has no other means of paying his debts other than liquidation. The other type of bankruptcy is chapter 13 which is a repayment plan. This plan is suggested to the creditors. In order to be eligible for this type of bankruptcy, one must have a steady income that exceeds all the expenses.

I hope you found that interesting.

You can always hire a lawyer. But hiring one to do all the activities of filing can be extremely expensive. You don’t need a lawyer if you don’t have adequate money to file bankruptcy. You can file bankruptcy for less and you still have the same result by hiring a bankruptcy petition preparer that will do the job for you as well. Remember that the reason you file bankruptcy is because you’ve got a problem with your funds. You could also prepare your papers but the risk of mistake can lead you to more assets that can be lost. To avoid this, you just need to initiate a petition preparer to handle your papers so you can do all the remainder of the filing by yourself. This way it’ll be cheaper. For more support on the means to file for bankruptcy on line, visit the website below.

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