People who are in over their heads in debt, and who have no way to pay it back, will often look to the courts to get rid of their debts. There are six types of bankruptcy that people can choose from that will eliminate their debt. This should be used as a last resort, since it negatively impacts people\’s credit score.

People can eliminate their debt by filing a Chapter 7. This will completely absolve the person of all of their debts. This includes their assets as well. Assets are tangible items, such as houses, boats, and cars. People who own a home might not want to choose this route, since they are not able to protect their house in a Chapter 7 filing.

Another way that people can get rid of their debt is to file a Chapter 13. This filing restructures all of their debts. The courts will have the person set up on a repayment plan to pay a certain amount over a specified period of time. Most repayment plans last a few years. Once the repayment plan is finished, the debts are eliminated.

Another way to eliminate debt for individuals as well as businesses is to file a Chapter 11. This filing is mainly used for businesses who have accumulated a lot of debt, and by paying the debt will make them go out of business. This filing also restructures debt like a Chapter 13 does, but the business can keep their assets. Chapter 11 is very complex and expensive, so businesses need to make sure that this is a last resort.

Chapter 12 filings are used in the fishing and farming industries. This Chapter allows families who own farms and fishing companies to reorganize their debts through the courts. This restructuring is similar to the Chapter 13 filing, but it lasts three years.

When municipalities fall on hard times, they can file a Chapter 9. This is a restructuring of their debts similar to a Chapter 11. These are also quite costly and complex. Attorney\’s can help municipalities to get through the filing process easily, since this requires a lot of time to get all the documents correct.

The last type of filing is only for Wisconsin residents, and that is a Chapter 128. This is similar to a Chapter 13, and an individual needs to go through the court systems to have their debts restructured. This Chapter is done voluntarily, and is considered a consolidation plan. The other types of filings are federal filings. The Chapter 128 filing is done within the State of Wisconsin.

With how the economy is since the mortgage crisis a few years ago, there has been a steady increase in these types of filings. This should be a last resort for people, who cannot pull through and resolve their debt issues through the creditors. Whenever people think of filing bankruptcy, they need to hire an attorney that will help them go through the process. It is highly inadvisable for people to file the papers by themselves, since they do not know all of the laws that govern them.

We are a debt consolidation Brampton organization whose business is helping those facing bankruptcy in Brampton and debt problems.

We are a debt consulting organization whose business is helping those facing bankruptcy and debt problems.
http://www.debtcare.ca/

Author Bio: We are a debt consolidation Brampton organization whose business is helping those facing bankruptcy in Brampton and debt problems.

Category: Finances
Keywords: debt, consolidaton, bankruptcy, finance, home, leisure, recreation, family, business