Many people are asking themselves how do I file for bankruptcy, as this can be a difficult process to figure out. Fortunately, you don't have to figure it all out yourself.
The first thing you need to understand are the different kinds of bankruptcy filing available to you. If you are filing for personal bankruptcy, you have two choices-chapter 7 and 13. if filing for business, you can also opt for chapter r11, which is probably the most preferred kind, for reasons I will get into.
Chapter 7 is where your personal assets will be used to liquidate and then pay off your creditors, and any remaining money you owe after all your non exempt assets (those that are able to be liquidated) will be discharged.
Therefore, while most of your important belongings will be gone, at least you will be given a clean slate. Many people view this as a devastating form of bankruptcy, because as a ideas, they lose most of their belongings.
However, you'd be amazed at how little you can live on when you try. The best part is that all figure income you earn goes directly to you, unlike the other two scenarios, which I will now cover.
In the case of chapter 11 (which again only applies to businesses) you have to submit a plan to the court explaining how you plan on paying off your creditors on a monthly basis). Obviously, the plan has to be well defend and through in order for the court to accept it. in addition, you have to provide proof of your current income and debt levels, in order to show them that you are able to fulfill this plan.
No speculation here. It doesn't do any good to tell the court that you have a big business deal coming up, and that your income is really going to take off. If your income isn't currently high enough, you won't be able to file for this, plain and simple.
This has very specific requirements that you need to meet before you can even file for it, and if you are at all unsure of them, I would highly recommend you hire a good lawyer who can help you through the process when asking how do I file for bankruptcy? It can save you a ton of hassle in the long run.
The first thing you need to understand are the different kinds of bankruptcy filing available to you. If you are filing for personal bankruptcy, you have two choices-chapter 7 and 13. if filing for business, you can also opt for chapter r11, which is probably the most preferred kind, for reasons I will get into.
Chapter 7 is where your personal assets will be used to liquidate and then pay off your creditors, and any remaining money you owe after all your non exempt assets (those that are able to be liquidated) will be discharged.
Therefore, while most of your important belongings will be gone, at least you will be given a clean slate. Many people view this as a devastating form of bankruptcy, because as a ideas, they lose most of their belongings.
However, you'd be amazed at how little you can live on when you try. The best part is that all figure income you earn goes directly to you, unlike the other two scenarios, which I will now cover.
In the case of chapter 11 (which again only applies to businesses) you have to submit a plan to the court explaining how you plan on paying off your creditors on a monthly basis). Obviously, the plan has to be well defend and through in order for the court to accept it. in addition, you have to provide proof of your current income and debt levels, in order to show them that you are able to fulfill this plan.
No speculation here. It doesn't do any good to tell the court that you have a big business deal coming up, and that your income is really going to take off. If your income isn't currently high enough, you won't be able to file for this, plain and simple.
This has very specific requirements that you need to meet before you can even file for it, and if you are at all unsure of them, I would highly recommend you hire a good lawyer who can help you through the process when asking how do I file for bankruptcy? It can save you a ton of hassle in the long run.
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