Personal Bankruptcy: Know Whether To Choose Chapter Seven Or Chapter Thirteen

Bankruptcy laws in the United States are made to ensure the interests of the borrower are safeguarded, and are formed by the federal government and addressed accordingly by various US Bankruptcy Courts, and it is believed that each year as many as one million Americans go bankrupt and are found filing for bankruptcy. Most of these individuals that file for bankruptcy do so under different personal bankruptcy laws that include the boards thirteen and also the boards 7, and in a few instances, they can even be eligible for the boards twelve, especially if they are anglers or farmers and business is owned by the family tree.

Filing Under The boards Seven

You can file personal bankruptcy and at the same time do so under the boards seven in which case it is necessary for you to provide a list of all your assets to the court and also have to assign a trustee who will liquidate items in order to pay off creditors. Furthermore, filing personal bankruptcy is allowed once in seven years and the cost of filing personal bankruptcy is approximately three hundred dollars which goes towards filing fee.

If you plot on filing personal bankruptcy under the boards thirteen, it will aid in reducing your debt even if unlike the boards seven, does not cancel out your debt. And, the boards thirteen personal bankruptcies also means having to set out a plot for repayment with creditors and courts and assigning trustee who will make monthly payments after paying them the money. The trustee will hear payments from you and apportion them to various creditors, and an advantage to using the boards thirteen for filing personal bankruptcy is that unlike in the boards seven, under this the boards you may hold on to everything that would have been lost under the boards seven.

But, both these types of personal bankruptcy allows the debtor to rid him or herself of debts, even if remember when filing the boards thirteen bankruptcy, you need to have debt that is not more than two hundred fifty thousand dollars and that such debt is unsecured, while debts that are secured should not exceed seven hundred and fifty thousand dollars.

The bottom line is that before filing for personal bankruptcy, makes sure to know what the ramifications of different chapters are and in most instances it may be better to file for the boards thirteen instead of the boards seven as the end shows that you are a person that does not pay your debts.

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