How To Bankruptcy – Two Main Types Of Lawsuit You Can File

by | Apr 25, 2012 | Legal Advice

Has the ever-skyrocketing expenses of cost of living affected you? You are not alone, there are many people who have become the victims of cost cutting and corporate downsizing by companies and organizations they work for. In addition to this, piling up of unsecured bills,  interests on borrowed money, and too many unpaid loans can soon lead to a poor financial situation. Filing bankruptcy lawsuit is the best way to get out of such a huge debt. It is the best way to get rid of harassing calls and threats from the creditors. However, before you file a lawsuit, you should have a transparent idea regarding how to bankruptcy. You should know how to file a case at the court and what are the options you have. There are two main types of insolvency cases. An individual can file such a case either under Chapter 7 or 11. When you are in doubt about how to bankruptcy, it is advised that you take the help of an experienced lawyer. Given below is a short discussion on the  two main types of insolvency cases you as an individual are eligible to file:

Chapter 7 – To qualify to file an insolvency lawsuit under Chapter 7, you should pass the “Means Test”. This test basically is an equation that figures and analyzes your income and compares it with the state median. If you qualify for filing a case under Chapter 7, you need to enlist all your non-exempt properties. All these properties will be sold in a foreclosure. The money obtained from such a foreclosure is used to pay back the creditors. Before putting your property on foreclosure under Chapter 7, you should make it a point to read how  to bankruptcy information. Remember, after the foreclosure procedure, there will be no wage garnishment and the creditors will also stop making threatening calls.

Chapter 13 – Unlike Chapter 7, this is a repayment plan, in which you can choose any installment plan suitable for you to repay the loans. You can pay it to the creditors over an extended time, which the Court has to approve through valid documents. However, one major benefit if choosing to file a lawsuit under Chapter 13 is that you do not have to lose your belongings in a foreclosure.

So, if you want to get your finances in order by filing a bankruptcy lawsuit, you should definitely read articles and gather relevant information on how to bankruptcy. There are a few websites where you can find articles and information on the same.

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