Personal bankruptcy procedures

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For individuals, there are basically two types of personal bankruptcy, namely Chapter 7 and Chapter 13. Designed to give the applicant a fresh start in life by wiping out certain debts, Chapter 7 rids the applicant of credit cards and other unsecured debts. Chapter 13, on the other hand, is a court-approved payment plan in which the applicant must repay a predetermined percentage of their debt. The determination of which chapter to use will be based on the applicant’s disposable income, if any, after paying their monthly bills.


Article Summary: 1 1.1 Retaining the assets in exchange for risk managers email database repayment of part of the debts or the sale of non-exempt assets 1.2 Filing a petition with the local bankruptcy court 1.3 Wait for the final decision of the creditors Personal Bankruptcy Procedures Retaining assets in exchange for repayment of part of the debts or sale of non-exempt assets When many people file for bankruptcy, their first thought is about their assets and the possibility of losing their home .


Under a Chapter 13 repayment plan , most filers are allowed to keep their assets in exchange for paying off some of their debts . Chapter 7 , on the other hand, is designed as a liquidation process that often results in the sale of non-exempt assets . What are non-exempt assets in a bankruptcy proceeding? Each state has its own laws regarding the amount of property an individual or married couple can keep without fear of it being liquidated.