Types Of Bankruptcy

by | Oct 11, 2012 | Law

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File for bankruptcy Vista

File for bankruptcy Vista

Are you thinking to File For Bankruptcy in Vista? If you are, there is some information you may want to consider before you begin the process. There are several types of bankruptcy: Chapter 7, Chapter 11, Chapter 12 and Chapter 13. Knowing the different types and how they are used will help you choose which type of bankruptcy to file for.

The most common type of bankruptcy is Chapter 7, because it is the easiest to file for and the least expensive. It involves the liquidation of an individual’s, business’, or corporation’s assets in order to meet the debts that have been incurred. The debt that is left over after the liquidation is forgiven. You may wonder if you should File For Bankruptcy in Vista under Chapter 7. If it requires you to liquidate your assets, will you be left without a home, car, furnishings, or other belongings that are near to you? Not necessarily. There are certain assets (some only up to a certain dollar amount) that are protected by law when you file for Chapter 7 bankruptcy. There are some types of debt that cannot be cleared under Chapter 7 bankruptcy. This includes any student loans you may have, child support that you are required to pay, and taxes that have not been paid.

The most complex type of bankruptcy is Chapter 11. Generally, businesses will apply for

File for bankruptcy Vista

File for bankruptcy Vista

this type of bankruptcy. The reason it is so appealing to businesses is because it allows the business to continue functioning, retaining its assets. Filing for Chapter 11 bankruptcy helps a business create a plan that will help it to pay back its debts.

Chapter 12 bankruptcy is much the same as Chapter 11. The only difference with Chapter 12 is that is used to help people who own farms File For Bankruptcy in Vista. The farmer is able to keep the farm running and retain assets, but gets help in figuring out a plan for paying back debts.

Chapter 13 is also like Chapter 11, but it is designed for individuals. It allows the individual to retain his or her assets and to repay the debt in three to five years. A part of the debt may be forgiven, but that depends on the income of the person filing. Under Chapter 13 there may be a limit to how much debt you can declare bankruptcy for.

File for bankruptcy Vista – Get in touch with Vista Bankruptcy to file for bankruptcy in Vista. They will explain you the different types of bankruptcy and what debts can and cannot be discharged.