What are some different Bankruptcy Options?
Bankruptcy is a legal process to help individuals or businesses who cannot pay their current debt. There are a few different bankruptcy options depending on the individuals or businesses situation. Bankruptcies are filed in federal court and there is a fee to file. Bankruptcy options for personal debt include a Chapter 7, which is the most common type of bankruptcy. This involves a liquidation of assets. After an individual shows proof of debt, income and assets, the bankruptcy court reviews the financial records and determines if the debt to income ratio is high enough to grant a bankruptcy. Certain assets may be seized by the court, then sold and the money is divided up and given to the creditors. The remaining debt would be eliminated through the court. Certain types of debt are prohibited by law from being eliminating, for instance, child support, federal student loans or taxes owned to the Internal Revenue Service are not eliminated. Some assets are protected by state and federal
