Bankruptcy is a
legal proceeding in which a person can get a fresh financial start.
Bankruptcy can be very useful and effective in resolving financial problems
in certain cases.
What Is Bankruptcy?
Bankruptcy is a form of financial protection sometimes sought by a borrower who is
unable to pay rent or mortgage payments, has no credit or means of paying for it, and is unable to reconcile with collection agencies. There are two methods of filing for personal bankruptcy: Chapter 7 and Chapter 13. A Chapter 7 bankruptcy eliminates most types of debt (notable exceptions include taxes, alimony, and most student loan debt) by liquidating all non-exempt property (as set forth in the Chapter 7 filing) to pay debts, and wiping out anything left over after the liquidation. A Chapter 13 bankruptcy allows a borrower with a steady income to establish a full or partial debt repayment plan, usually over a 36- to 60-month period.
Source : www.bills.com
unable to pay rent or mortgage payments, has no credit or means of paying for it, and is unable to reconcile with collection agencies. There are two methods of filing for personal bankruptcy: Chapter 7 and Chapter 13. A Chapter 7 bankruptcy eliminates most types of debt (notable exceptions include taxes, alimony, and most student loan debt) by liquidating all non-exempt property (as set forth in the Chapter 7 filing) to pay debts, and wiping out anything left over after the liquidation. A Chapter 13 bankruptcy allows a borrower with a steady income to establish a full or partial debt repayment plan, usually over a 36- to 60-month period.
Source : www.bills.com
Legal filing with a court of a person's or company's inability to repay debts. Bankruptcy is a LAST RESORT.
It kills credit ratings and remains on credit reports for 10 years. Federal student loans, Federal income tax debt and Child support are all exempt from bankruptcy protection laws.