53
edits
Debt Relief:Definitions: Difference between revisions
→Bankruptcy
| Line 3: | Line 3: | ||
*Bankruptcy occurs when the federal system of statues and courts authorize insolvent individuals or businesses the ability to place their financial affairs under the bankruptcy court's control. When the debtor's exceed his or her ability to pay, the debtor may file a petition with the bankruptcy court for voluntary bankruptcy. | *Bankruptcy occurs when the federal system of statues and courts authorize insolvent individuals or businesses the ability to place their financial affairs under the bankruptcy court's control. When the debtor's exceed his or her ability to pay, the debtor may file a petition with the bankruptcy court for voluntary bankruptcy. | ||
The two most common types of bankruptcy filed by individuals and businesses are: Chapter 7 bankruptcy and Chapter 13 bankruptcy. | |||
*'''Chapter 7'''-involves the liquidation of all your assets that are not exempt from the bankruptcy settlement. | |||
*'''Chapter 13'''-is a court-ordered and approved repayment plan to your creditors. | |||
===Consolidation=== | ===Consolidation=== | ||