Bankruptcy (1)

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Bankruptcy, and other financial information

Bankruptcy occurs when individuals or organizations are unable to repay debt given their current and future income. Bankruptcy is an option for recovery from debt collections.

Filing for bankruptcy can end calls from commercial collections agencies, but will remain on your credit 10 years.

Two major forms of bankruptcy exist: Chapter 7 bankruptcy and Chapter 13 bankruptcy.

Chapter 7 bankruptcy can help individuals with little or no a relatively fast, fresh start. The debtor gives up all non-exempt property and assests to a bankruptcy trustee who in turns liquidates it into cash, then dispersing the cash to creditors.assets

Chapter 13 bankruptcy gives greater time to pay off their debt. This time period could be between three and five years. A benefit to this type of bankruptcy allows individuals to hold on to some property while the individual reorganizes their financial debts. This is only available to individuals who have been determined to have steady and predictable income that can pay living expenses and some debts.individuals

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