Insolvency is never the right choice for anyone to make. On the contrary, it causes you problems and can ruin your life if not taken care of correctly or quickly enough. Bankruptcy laws are there to help people who have fallen on hard times, but you must understand how bankruptcy works before signing up with a lawyer or filing yourself. To make informed decisions, be sure to check out Roemerman Law.
There are different types of bankruptcy. Each one is different in terms of its effects on you and your finances.
Four types of bankruptcy are:
Chapter 13 – this type involves keeping all your assets while making monthly payments to a trustee for up to five years (the length can be extended if necessary). Once the term has ended, any remaining debt will need to be repaid directly by you or through your estate when it’s sold off after death. The upside is that everything stays intact — no asset liquidations are required here.
Chapter 11 is an option, debts must remain paid, but there won’t be anything left over afterwards from what was already given away before the proceedings were. At least they’ll pay for the legal fees.
Chapter 12 is for farmers who have fallen on hard times and can’t meet their financial obligations through traditional means — they’re allowed to keep a portion of what’s left after bankruptcy proceedings finished, but not all of it. It just depends on how much money there was, to begin with (or how little). This is known as “wage earner” protection. It essentially gives you back your job title until everything has been sorted out properly regarding finances or assets that need liquidating.
Chapter 15 is a special provision for foreign nationals dealing with bankruptcy proceedings in the United States. It’s not designed to help anyone personally. Still, it can allow your creditor or debt collection agency more power over you if they’re based overseas and want their money back as soon as possible.
Why filing for insolvency might be necessary?
– If creditors are calling day and night because you haven’t paid your bills
– If you’re unable to make rent or mortgage payments
– If creditors are about to seize the property (like car repossession)
Sometimes, it’s just time to say goodbye and start afresh with a clean slate so that you can get back on track financially without having any more problems than before. It all depends on how bad things got in terms of personal debt accumulation — but now you know what options are available if necessary.