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What does Bankruptcy mean?
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Two major forms of bankruptcy relief exist: Chapter 7 and Chapter 13. Chapter 7 calls for the complete liquidation of all personal assets (selling absolutely everything) to satisfy the interests of creditors. You may end up owning absolutely nothing, but you will not have any bills lingering from the past. Chapter 13 involves a court-supervised repayment plan that can last up to five years to satisfy the interests of the creditors. Usually the paycheck of the defaulter is garnered for a certain amount each month. Some assets, such as a home or a vehicle, may be retained by the defaulter. Though future lenders may look more kindly on a Chapter 13 bankruptcy, they are basically equal and the road to recovery is about the same.
Categories: Bankruptcy Recovery
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