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Know More on how to file for Chapter 7 and Chapter 13 BankruptcyChapter 7 bankruptcy The chapter 7 bankruptcy not only gives the filer, protection against the creditors but it also take away the burden of debt from his shoulder. This bankruptcy service helps you to find a new start soon and leave behind all the debts, paid and settled. In order to be able to file for Chapter 7 you need to have less than the median income compared to those people residing in your area. There is a test called as the Mean test that tells whether you are eligible or not for the Chapter 7 bankruptcy. See If You Eligile to file for chapter 7 Bankruptcy : http://www.loansstore.com/chapter-7-bankruptcy/ If your disposable income comes to $10,000 or more, then you do not qualify for chapter 7 instead you will have to take up chapter 13 bankruptcy. If your disposable income is more than $100 and if your period of five years covers 25% of unsecured debt even then you will have to go for chapter 13 bankruptcy. It is only when your disposable income is less than hundred dollars per month then you can qualify for if you are able to Chapter 7 bankruptcy. When you take bankruptcy help from filing Chapter 7 bankruptcy, your assets would be exempted. Although the items that get exemption differ from state to state. Chapter 13 Bankruptcy This chapter is often called as the wage-earners bankruptcy. This also offers a person to start fresh but it requires the filer to pay off certain amount of debt. Keeping in mind your disposable income a plan is made to pay off your unsecured debts. Most part of your income will go in paying off debts but there would be part of your income dedicated to your expenses. This is stretched over a period of 3 to 5 years. Once it is done, your outstanding debt will be discharged. See If You Qualify to file for chapter 13 bankruptcy : http://www.loansstore.com/apply-bankruptcy.php Filing for chapter 13 can take time since you have to submit a detailed budget. This payment is made to the trustee who further handles the affairs for you. This type of bankruptcy helps you to discharge most part of the interest and pay the principle amount instead. As a community-building service, TMCnet allows user submitted content which is not always proofed by TMCnet editors. If you feel this entry is of inferior quality or wish to report it for some reason, please forward the URL to "webedit [AT] tmcnet [DOT] com" with your comments. |