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BRIAN LINNEKENS GIVES AN INSIGHT ON DIFFERENT TYPES OF
BANKRUPTCY
Bankruptcy is a legal process that reduces debt and gives you a chance to
reorganize your debts. According to Brain Linnekens by filing bankruptcy, you can
easily overcome your bad financial situation. You can pay back your debt within 710 years with repayment plans. Bankruptcy has several types of chapters but in
most cases, people file chapter 7 & 13 because these chapters are effective and
easy to file.
When Chapter 7 Bankruptcy can be an option explains Brian Linnekens
Chapter 7 is very helpful for debtors who are not able to pay back their debt. It is
very useful in those cases where majority of the debt is unsecured because in
chapter 7 bankruptcy some of your property is sold to recover the debt one has
incurred from creditors and in return your unsecured debt will be written off.
Remember everyone does not file chapter 7 bankruptcy. In cases where the
disposable income is enough to file a chapter 13-repayment plan after subtracting
certain allowed expenses and monthly payments for certain debts you would not
be allowed to use chapter 7 bankruptcy.
Chapter 9 Bankruptcy as explained by Brian Linnekens
Chapter 9 bankruptcy is designed for “municipalities.” The main purpose of chapter 9
is to safeguard a municipality from its creditors while it negotiates its debts.
According to chapter 9 bankruptcy a creditor cannot take over the assets of the
municipality from the municipality. Only a municipality can file for relief under
chapter 9.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is very complicated and it used for those peoples who are
struggling with their business and want to reorganize their finances. It is generally
used only by those whose debts exceed chapter 13. In this process debtors
continuously work and maintain owner ship of all assets and try to fulfill to pay off
creditors. Chapter 11 is more expensive. Before filing chapter 11 you will need to talk
to a bankruptcy lawyer like Brian Linnekens who will be able advice you
professionally based on his experience and years of learning in the realm of
Bankruptcy.
Chapter 12 Bankruptcy
Very few people use chapter 12 bankruptcies. It is specifically for farm owners.
According this chapter the debtor maintains ownership of his assets and works out a
repayment plan with the creditors. Similar to chapter 13, filing under chapter 12
bankruptcy you can pay back your debt within three to five years.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is one of the most beneficial options for those people who
are struggling with their debts. It is best for those debtors who are behind on
secured debts such as home mortgages and car loans. Chapter 13 bankruptcy gives
you a chance to keep all your assets and you can stop foreclosure with the
repayment plan agreed upon in the Bankruptcy terms and conditions. According to
the repayment plan, you can pay back your debt within three to five years. The time
of three to five years can be increased by the bankruptcy process if you are not able
to pay off your debt within three to five years. Since paying off the debt within a
particular time period will depend on your present income. Chapter 13 will help you
to reorganize and reduce your debt. It will also give you a chance to create new
plans to pay off your debts and gives you more time to fulfill your financial
obligations.
Bankruptcy has provided us many options. If you are thinking of filing bankruptcy
then you need to understand the various bankruptcy options and know which one
is suitable for you. Before filing bankruptcy, you can talk to a bankruptcy lawyer
since bankruptcy law is very complicated and with the help of an attorney you can
easily know the difference between the various bankruptcy chapters. Filing for
bankruptcy should be the last option. Before filing for bankruptcy you should
check for other options like loan modification or loan settlement whichever is
possible for you.
Article Resource - http://www.brianlinnekens.com/2017/03/25/brian-linnekensgives-an-insight-on-different-types-of-bankruptcy/