U.S. bankruptcy laws Demystified

Compared to debt ever mounting and seemingly uncontrollable you can reach a point where drag filing bankruptcy into account. Bankruptcy options are available. By understanding the basics of the Bankruptcy Code, you are in a strong position to make informed decisions. BankruptcyChapter 7 Chapter 7 bankruptcy is designed to permit consumers to liquidate or eliminate their debt.Chapter 13 BankruptcyChapter 13 bankruptcy allows a consumer the chance to develop a short supervised plan payment to satisfy debts due to creditors.Chapter 13 PlanA Chapter 13 plan requires a debtor to make a monthly payment to the bankruptcy trustee for a period of between two to five years, until the balance due to creditors is paid off.Automatic StayWhen a bankruptcy case is filed, the short issues an automatic stay, an order that prevents creditors from taking any further action against the debtor absent a further order from the court.Reaffirmation AgreementA re-emphasizing agreement allows a debtor to pay off the balance due on a secured loan - a home mortgage, for example - and keep the property that the financing was used to obtain.DischargeThe final stage of a bankruptcy discharge is, the time when the debts to creditors have been liquidated (Chapter 7) or paid off (Chapter 13).