It is tough to understand the different types of bankruptcy situations if you have little inking of the rules and regulations guiding the same. So, if you are finding yourself in a similar boat and would like to gain an understanding of the different chapters dealing with bankruptcy, such as Chapter 13 bankruptcy Oregon, then you are in the right place indeed.
Chapter 7 bankruptcy
This is one of the most commonly pondered about chapters related to bankruptcy rules and norms. Also referred by laymen as liquidation bankruptcy, this chapter talks about the recourses that can be taken in case you wish to get rid of outstanding debts, but when the court may or may not force you to liquidate a few of your for satisfying your creditors. In most cases, Chapter 7 bankruptcy costs about $299 for filing fees and completing the paperwork. It usually takes a period of four and six months for completion.
Chapter 11 bankruptcy
This chapter is used primarily by large-sized businesses for reorganizing their debts and paying off their creditors. In this case, the creditors are required to design their own payment plans and get them approved by creditors. If the plans are not approved, then the creditors may push it via court proceedings anyway. This kind of bankruptcy usually has a low success rate of say 10%. It does not serve as a feasible bankruptcy option for regular consumers.
Chapter 13 bankruptcy
The Chapter 13 bankruptcy is quite different from chapter 7 bankruptcy. The various points of Chapter 13 are helpful as reorganization plans for those people who would like to repay their debts across a period of 3-5 years. In most cases, the options of Chapter 13 are used by those debtors who are not exempted under the chapter 7 bankruptcy regulations. The debtors opting for chapter 13 should have enough income for covering their living expenses, with enough being left over for paying off their debts.
It is not everyone who is eligible for the filing of chapter 7 bankruptcy. In case the applicant has already been discharged for bankruptcy in the last 6-8 years, then, he will not be eligible for filing bankruptcy under chapter 7. In such cases, the court will find it essential to review if the applicant is eligible for filing chapter 13 instead. This will amount to taking a repayment plan in lieu of canceling the debt completely. The decision will be on the basis of the applicant’s debt load, income, and expenses.
You may want to visit your lawyer’s website to gain deeper insights into how the various chapters on bankruptcy work for you – log in today.