Examples Of Different Bankruptcy Situations

By Amy Norman

Moving into the twenty first century, many Americans aren’t sure of what to expect. Outsourcing labor to Mexico and India is what many businesses have started to do. Because of the loss of jobs, unemployment comes to the employees. Most people caught up in a company’s decision to search for lower waged employees cannot find suitable jobs in the same geographic area in which they live.

They have worked at a job for many years and had higher wages. Finding new work with the higher wages is almost impossible. This is the reason why there could be a financial impact on the family and having bill collector’s call only adds to the already stressed out situation. One option that people may decide on is choosing to file one of the types of bankruptcy. For the homeowner there are two different types of bankruptcy.

One is called chapter thirteen while the other is known as chapter seven. In chapter seven bankruptcies, the debtor is allowed to erase all debts that are owed while letting people keep the house and cars if they desire. Taking away the burden of debt payments is what they can do and in turn, they take away much of the stress that the people were under. The only payments that the people will have to pay are the payments on the house and any cars that the people may have kept.

The Types of Bankruptcy – Chapter Thirteen.

This section, as the first part of this article dealt with chapter seven bankruptcies, includes the other types of bankruptcy such as chapter thirteen bankruptcies. When you file for bankruptcy with chapter thirteen, it means that the people can keep almost everything that they want to.

There is a difference in this case and that the people who file chapter thirteen bankruptcies tell their attorney what they want to keep and in turn, the attorney begins the task of talking to the creditors. It would depend on the situation but this can take thirty days or even more. Trying to get the creditors to accept lower overall costs for each item is what the people’s attorney will do. One example of this would be about the cost of the piano.

About five thousand dollars is what the people may owe the creditor and the attorney will try to get the overall cost to three thousand dollars. In other words, the now only have to pay the three thousand dollars and not the original five thousand dollars. The people save two thousand dollars on the piano and the people can then begin to resume payments on the piano.

The monthly payment may drop as a result which saves people money every month. Consulting an attorney is the best course of action to aide an individual in determining the best type of bankruptcy to file for their situation.

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