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Things You Should Know About When You File Bankruptcy – The Various Chapters

Posted by on Sep 2020 in Law and legal | 0 comments

One of the principles that the United States of America was built on was that it would give every person a second chance, and even more if he deserved it. A single mistake would not condemn anyone to doom. It is because of this that America became known all over the world as the land of opportunity. It is because of this that men like Henry Ford and Walt Disney could be who they were, even though both of them, and even more such leaders had to file bankruptcy at some point during their lives.

If you have decided to do the same thing in the face of mounting debts, you have actually made a very good decision. The social stigma and the poor credit rating are things that come with the territory, and these are the elements that scare people away from taking this sensible step. However, if you think about it, these are all things that can be fixed, as long as you have the time and the peace of mind to concentrate on rebuilding your life. And that’s what filing bankruptcy can give you.

When you decide to declare bankruptcy, you will find that there are many types you can file for. These are described under various chapters of the Bankruptcy Act. Take a look:

  • Chapter 7: This is the most common type of bankruptcy declared by individuals. In this case, a trustee takes over the person’s assets excluding the exempted assets. Exempt assets can include the person’s home, his vehicle, clothing, etc. The exact list varies from state to state. Then he sells off those assets and uses the money raised to pay the creditors.
  • Chapter 13: This is an option for people who may be unable to repay their debts but still have a steady source of income. Here, no assets are liquidated. Instead the person who files bankruptcy is allowed to pay off his debts over a period of 3 to 5 years.

While the above two are the most common types of personal bankruptcy, they can also be filed by small businesses. There are other chapters like Chapter 11 and Chapter 12, but these deal with larger companies and highly specific cases like farmers or fishermen.

If you want to file bankruptcy, Taunton, MA has plenty of attorneys who will be able to help you out with the legalities and the paperwork. However, make sure you choose an attorney who specializes in this type of work as he or she will be able to give you the best advice.

Resource Box:

File bankruptcy Taunton, MA – Are you making a decision to file bankruptcy in Taunton, MA ? Sweet and Rose, Attorneys at Law will help you every step of the way.

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