Declaring bankruptcy has numerous benefits, including protection from creditors and financial institutions. More so, a successful application gives you time to organize and pay off what you owe at a reasonable rate and timeline. However, success is only possible if you complete specific requirements. Therefore, if you're planning to submit a chapter 13 bankruptcy application, contact a legal advisor to know your obligations. They will ask you to take the following essential measures to ensure success.
When filing bankruptcy, you can choose Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. However, this article will focus on Chapter 7 bankruptcy, also known as liquidation or straight bankruptcy.
What Is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is popularly known as liquidation bankruptcy because it eliminates all your unsecured debts. These debts can include medical bills, credit card debt, and personal loans.
Most people prefer liquidation bankruptcy because it is quick and straightforward.
