What are bankruptcy assets?
Bankruptcy serves as a real option for those who find themselves unable to pay off their debts. However, one of the main concerns that people have when it comes to bankruptcy is what will happen to their assets. To understand this, we must first explain the two most common forms of bankruptcy.
In chapter seven bankruptcy, your aim is to discharge, or wipe out, your debts completely. The downside, however, is that you may have to forfeit some of your assets in order to pay off at least part of your debt.
The other major form of bankruptcy is called chapter 13. Instead of just getting rid of your debt completely, chapter 13 is meant to form a payment plan to help you get back on track. This is often used to help people get caught up with their mortgage payments, and the repayment plan usually last 3 to 5 years. The good part about chapter 13 is that you don't have to forfeit any of your assets.
So, if are trying to get rid of your debt completely, then chapter seven would be the way to go. The problem is that you may have to sell off some of your assets in order to help pay for the debts that you owe. This is called liquidation, and it is a part of chapter seven bankruptcy.
The good news (or the bad news, depending on your perspective) is that most people who file for chapter seven bankruptcy don't have any assets that qualify for liquidation. If your financial situation has come to this point, then you probably don't have much to liquidate.
Of course, most people are primarily concerned with their house (and to a lesser extent, their automobile). The details will depend on your state as well as how much your house is worth, but in most cases you have a considerable amount of protection when it comes to your house.
You should realize that finding a good bankruptcy attorney is essential to help you file bankruptcy successfully. There are just too many details for you to try to figure everything out on your own.
Still, you should continue to learn as much as possible about your options from articles like this one before you speak with your lawyer. This can help you become a more informed consumer and get through the process more efficiently.
In chapter seven bankruptcy, your aim is to discharge, or wipe out, your debts completely. The downside, however, is that you may have to forfeit some of your assets in order to pay off at least part of your debt.
The other major form of bankruptcy is called chapter 13. Instead of just getting rid of your debt completely, chapter 13 is meant to form a payment plan to help you get back on track. This is often used to help people get caught up with their mortgage payments, and the repayment plan usually last 3 to 5 years. The good part about chapter 13 is that you don't have to forfeit any of your assets.
So, if are trying to get rid of your debt completely, then chapter seven would be the way to go. The problem is that you may have to sell off some of your assets in order to help pay for the debts that you owe. This is called liquidation, and it is a part of chapter seven bankruptcy.
The good news (or the bad news, depending on your perspective) is that most people who file for chapter seven bankruptcy don't have any assets that qualify for liquidation. If your financial situation has come to this point, then you probably don't have much to liquidate.
Of course, most people are primarily concerned with their house (and to a lesser extent, their automobile). The details will depend on your state as well as how much your house is worth, but in most cases you have a considerable amount of protection when it comes to your house.
You should realize that finding a good bankruptcy attorney is essential to help you file bankruptcy successfully. There are just too many details for you to try to figure everything out on your own.
Still, you should continue to learn as much as possible about your options from articles like this one before you speak with your lawyer. This can help you become a more informed consumer and get through the process more efficiently.
About the Author:
Don't let the fear of your debt take over your life. Get the facts about bankruptcy and learn how to get control of your debt. To learn more about what is chapter 7 bankruptcy visit us at http://personalbankruptcyquestions.org
posted by Credit Counseling at
4:42 PM
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