The Two Bankruptcy Types

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Brenner Keehgan has 3 Published Articles

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The Two Bankruptcy Types

Posted On : Aug-19-2010 | seen (445) times | Article Word Count : 262 |

When financial problems develop, the only relief a person may have is bankruptcy. Of course, for ages there seemed to be a stigma associated with individuals who filed for bankruptcy.

When financial problems develop, the only relief a person may have is bankruptcy. Of course, for ages there seemed to be a stigma associated with individuals who filed for bankruptcy. Today, however, bankruptcy is more common, seen as an opportunity instead of a disappointment. If you are somebody who is looking into the bankruptcy process, then you should know about the 2 main forms of bankruptcy: liquidation and reorganization.

Liquidation falls under Chapter 7 of the bankruptcy laws and can be filed for by an individual or a company. After filing, the court names a trustee for your case, and that trustee has the ability to liquidate your property and pay creditors using the earnings. Creditors are paid in order of priority, and any surplus debt is then cancelled.

Reorganization is more of a repayment plan. Usually the most common form of bankruptcy, reorganization takes the debtor's regular monthly income and expenditures and plans payments to all creditors in order of priority. A trustee is appointed in these cases and given the task of setting up creditor payments based on income and expenses. While multiple chapters of bankruptcy allow reorganization, chapters 11 and 13 are the most commonly encountered.

But that's not all. There are many other subtle bankruptcy rules and nuanses that you have to know before you decide to file. That is why I recommend visiting a personal bankruptcy lawyer who is able to talk to you about your unique situation. Great bankruptcy attorneys can guide you through the process and help you get rid of debt.

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<h1>The Two Bankruptcy Types</h1> Author: <a href='http://www.articleseen.com/profile_Brenner Keehgan.aspx'>Brenner Keehgan</a> When financial problems develop, the only relief a person may have is bankruptcy. Of course, for ages there seemed to be a stigma associated with individuals who filed for bankruptcy. Today, however, bankruptcy is more common, seen as an opportunity instead of a disappointment. If you are somebody who is looking into the bankruptcy process, then you should know about the 2 main forms of bankruptcy: liquidation and reorganization.

Liquidation falls under Chapter 7 of the bankruptcy laws and can be filed for by an individual or a company. After filing, the court names a trustee for your case, and that trustee has the ability to liquidate your property and pay creditors using the earnings. Creditors are paid in order of priority, and any surplus debt is then cancelled.

Reorganization is more of a repayment plan. Usually the most common form of bankruptcy, reorganization takes the debtor's regular monthly income and expenditures and plans payments to all creditors in order of priority. A trustee is appointed in these cases and given the task of setting up creditor payments based on income and expenses. While multiple chapters of bankruptcy allow reorganization, chapters 11 and 13 are the most commonly encountered.

But that's not all. There are many other subtle bankruptcy rules and nuanses that you have to know before you decide to file. That is why I recommend visiting a personal bankruptcy lawyer who is able to talk to you about your unique situation. Great bankruptcy attorneys can guide you through the process and help you get rid of debt.About the Author: When Brenner Keehgan needed <a rel="nofollow" href=http://www.sfvbankruptcy.com>van nuys bankrupcy attorneys</a>, he used SFV Bankruptcy to get back on his feet. Brenner highly recommends his <a rel="nofollow" href=http://www.sfvbankruptcy.com>San Fernando bankruptcy lawyers</a> to all of his close friends and family members. Article Source: <a href='http://www.articleseen.com/Article_The-Two-Bankruptcy-Types_28221.aspx'> http://www.articleseen.com/Article_The Two Bankruptcy Types_28221.aspx</a>

Article Source : http://www.articleseen.com/Article_The Two Bankruptcy Types_28221.aspx

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When Brenner Keehgan needed van nuys bankrupcy attorneys, he used SFV Bankruptcy to get back on his feet. Brenner highly recommends his San Fernando bankruptcy lawyers to all of his close friends and family members.

Keywords : San Fernando valley bankruptcy lawyer, San Fernando Valley bankruptcy lawyers, San Fernando bankruptcy lawyers, San Fernando ,

Category : Finance : Finance

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