- Bankruptcy - Chapter 13
Chapter 13 bankruptcy is provided for wage earners who have steady income and are able to pay the creditors a portion or all of what they owe over a three to five year period. Attending a credit counseling course is mandatory before a filing of bankruptcy can be done. Each monthly payment is usually paid to the trustee to be forwarded on to the creditors. These payments must be paid and be paid on time. State laws govern bankruptcy, even though bankruptcy law is a federal law. Each state has different rules and guidelines. Consider options before filing bankruptcy such as out of court settlements and debt consolidation. - Bankruptcy - What Types Are There?
When considering filing for bankruptcy, you need to research the different categories. There are 4 types of bankruptcy: Chapters 7,11,12 and 13 - each of which has a specific purpose. - How To Avoid Bankruptcy
While bankruptcy is the best option for some, it is a good idea to do everything you can to avoid it. There are serious ramifications for claiming bankruptcy. You do have several options to work with creditors to help reduce your payments.
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