The recent recession left many people with severe debts, know the basics of filing for bankruptcy online which they were unable to return. When a debtor is unable to return his debt, then in order to get aggressive creditors give him a break, he has to file for a bankruptcy. Bankruptcy cases are dealt by courts under laws that are different in different states. The U.S. Trustee decides whether you are eligible for a bankruptcy or not. There are many types of bankruptcy that can be filed.
Usually when people are filing for bankruptcy online they are under immense stress. They would like to somehow avoid bankruptcy as it remains on the credit rating for at least seven years in the case of a chapter 7, bankruptcy. There is some cost to file bankruptcy that has to be incurred in the form of fees of the court and the fees of bankruptcy lawyers. The lawyers’ fees either have to be paid upfront in the case of Chapter 7, bankruptcy or it is included in the payment plan in case of chapter 13, bankruptcy. Though it costs to have a bankruptcy lawyer to deal with your case in the court, it is better to have a lawyer who prepares your papers as it relieves some pressure.
There are many things to consider while you are filing for a bankruptcy online. If you are filing chapter 7 bankruptcy, you should know that it remains on your credit score for 10 years. Chapter 7 bankruptcy is for those people who do not have enough income that they can schedule their payments over a period of time like in a chapter 13 bankruptcy. Chapter 7 bankruptcy is mostly filed by debtors who have got a lot of unsecured debt in the form of medical bills and credit cards. In chapter 7 bankruptcy almost all the property with the exception of certain exempt property is liquidated by the trustee to repay the debt. All the people collecting debt from the debtor who has claimed bankruptcy are stopped from doing so as soon as the process of bankruptcy begins. There are many unsecured debts that are written off, while still many need repayment in case of chapter 7, bankruptcy.
While filing chapter 13 bankruptcy online it is essential that there is some respectable source of income of the individual. In the chapter 13 bankruptcy case, a payment schedule is decided that is agreed upon by all the parties concerned, and allows the debtor to keep his/her assets, while giving him time to repay his debts. A chapter 13 bankruptcy remains on the credit score of the debtor for seven years. The chapter 11, bankruptcy is not for an individual. It is for a business and can be filed through a chapter 11 bankruptcy attorney. The chapter 11 bankruptcy supports the businesses to negotiate their debt with their creditors. The chapter 11 bankruptcy filing allows a business to use its revenue especially the profit to serve the loan and debts, and continue its operation.
Although it is not ideal to filing for bankruptcy online, but still filing chapter 7 bankruptcy online can help you in starting from scratch. In the case you have enough income you can save your assets by filing a chapter 13 bankruptcy online.